Pareto Securities AS
Pareto Securities impressively underlines its clear leadership position as the Nordic HY bond market experiences unparalleled expansion

Pareto Securities impressively underlines its clear leadership position as the Nordic HY bond market experiences unparalleled expansion

Frankfurt, July 19, 2024. Pareto Securities AS, an international investment bank headquartered in Oslo and a long-standing partner to the mid-market in Scandinavia and Germany, published its newsletter on the Nordic High-Yield (HY) Bond market for H1 2024 today. While the Nordic HY bond market shows another record high with a total issuance volume of EUR 8.2bn for the first half of the year, the figures also prove the appeal of the Nordic HY bond market for German issuers. The number of transactions by German companies, year to date already matches the total completed in 2023. Pareto Securities was involved in all German transactions.

The Nordic high-yield (HY) bond market experienced remarkable growth in the first half of 2024, surpassing the record volume of EUR 7.3bn in new issues during the same period in 2021 by a significant margin. Total issuances reached EUR 8.2bn, a 64% increase from EUR 5.0bn in the same period last year, marking the best first half ever.

Furthermore, the first half of 2024 showcased the ongoing internationalization of the Nordic HY bond market. Year-to-date around 40% of Nordic HY bond volume was raised by issuers outside the Nordics, driven also by German issuers. The substantial increase in Nordic HY bonds issued by German companies, year-to-date already matching the total number of transactions completed in all of 2023, again underscores the market’s attractiveness due to its broad and international institutional investor base.

Pareto Securities has maintained its position as the leading Manager in the Nordic HY bond market facilitating EUR 2.9bn in total bond issuances, already close to the EUR 3.0bn in full year 2023. In H1 2024 Pareto Securities achieved a market share of 30% in the overall market, a 52% market share in EUR-denominated Nordic HY, and involvement in 59% of private equity-backed Nordic HY transactions.

In Germany, Pareto was involved in all seven transactions issued under Nordic Bond documentation. In addition to the first quarter issuers Mutares, LifeFit, LR Health, and SLR Group, three more companies turned to the Nordic HY bond market with Karlsberg Brauerei, which transitioned from the German bond to the Nordic HY format, Booster Precision Components, which increased its 2022/26 Nordic Bond by EUR 18m to EUR 49m outstanding and lastly, The Platform Group, a Frankfurt Stock Exchange-listed operator of multiple e-commerce platforms, which raised a EUR 30m debut Nordic bond.

Christian Czaya, CEO of Pareto Securities Germany, stresses the potential for German SMEs: “The increasing number of German issuers on the Nordic HY bond market in the first half of the year shows that the format is established as a financing option for German SMEs. Nevertheless, the share of German issuers in the total volume makes it clear that the financing potential for German companies is far from exhausted.”

To access the newsletter on the Nordic HY Bond market, please follow this link.

About Pareto Securities
 
Founded in 1986, Pareto Securities is headquartered in Norway and has offices in Denmark, Finland, Sweden, Germany, the UK, Switzerland, the US, Singapore, and Australia. Pareto Securities has a leading position in the Nordic financial markets and a strong international presence. Pareto Securities offers a wide range of financial services, including equity and fixed income brokerage, equity, debt and project finance, and advisory services related to mergers and acquisitions and restructuring.