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Pareto Securities AS
Pareto Securities expands leading position in fast-growing Nordic high yield bond and SME bond markets in Scandinavia and Germany in 2021
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Pareto Securities expands leading position in fast-growing Nordic high yield bond and SME bond markets in Scandinavia and Germany in 2021
Frankfurt, February 2, 2022. Pareto Securities AS, an international investment bank headquartered in Oslo and a long-standing partner of SMEs in Scandinavia and Germany, has reaffirmed its leading position in the Nordic bond market. With a market share of 21%, Pareto Securities was again the clear leader among bond managers in the Nordic high yield bond market for the 16th consecutive year. In total, Pareto Securities successfully executed 115 DCM transactions with a total volume of approximately EUR 7.8 billion last year. Basically, the Nordic bond market saw high activity throughout 2021. The key drivers for Pareto Securities’ business were the strong Swedish market and the ongoing internationalization of the issuer and investor base. Swedish issuers contributed around 40% of the total primary market volume with a primary market volume of EUR 7.2 billion in 2021 (+152% year-on-year), taking over the top position from Norway (EUR 4.8 billion in 2021, +30% year-on-year). The breakdown of primary market volume across different currencies in 2021 confirms the trend towards internationalization. The share of Nordic high-yield bonds denominated in euros and U.S. dollars rose from 36% in 2020 to 53% in 2021. With a total primary volume of EUR 19 billion in more than 220 completed transactions, an outstanding market volume of around EUR 50 billion was reached for the first time last year. While the Nordic high yield bond market has traditionally been dominated by the oil and gas industry, the real estate sector emerged as the largest primary sector by volume in 2021 (EUR 3.7 billion), followed by the TMT sector (EUR 2.4 billion) and the financial sector (EUR 2.3 billion). The steadily increasing sector diversification here underscores the maturation of the market. In addition to oil and gas, other strong sectors in 2021 included renewable energy, transportation, services, and industrials. Lutz Weiler, CEO of Pareto Securities Germany, explains: “We were able to further expand our position as a leading player in the Nordic high yield bond and SME bond segment in 2021. More and more German issuers are recognizing the potential of the Nordic bond format to raise money from international investors for further growth financing. The Nordic bond market gives SMEs direct access to investors from Scandinavia and other European countries by way of private placements. In this context, targeted standard documentation is also a key advantage for companies. German SMEs still obtain around 85% of their debt capital from bank loans. We are convinced that, similar to Scandinavia or the USA, this proportion will be significantly reduced in the future and that adequate financing formats on the capital market will be used to a greater extent as a second mainstay alongside bank financing. As an experienced and strong placement partner, we are able to provide ideal support for issuers planning to enter the capital markets.” In the German market for SME bonds, a total of 28 transactions with a total volume of around EUR 1.1 billion were successfully completed in 2021. Primary activity in the German market was largely driven by Nordic bonds listed in Frankfurt, which accounted for around 50% of the primary volume. Pareto acted as advisor and manager in all Nordic bond transactions. About Pareto Securities
End of Media Release Issuer: Pareto Securities AS Key word(s): Finance
02.02.2022 Dissemination of a Press Release, transmitted by DGAP – a service of EQS Group AG. |