The Nordic high yield market bound for another year of high activity

2021 was a fantastic year for the Nordic High Yield market with a record high issuance activity. Total issue volumes ended at EUR 6 billion – approximately 40% above the previous record from 2017. Market leader Pareto Securities is expecting another year with high activity in 2022.

The Nordic high yield market is at a crossroad. The market that started as a substantial funding market for the capital-intensive energy sector in Norway has developed both in terms of industries and geographies and transitioned into a Norther European funding market for all kind of sectors. Ever more industries are considering the high yield market and the Swedish market is now the largest sub-market with approximately 40% of the total issuance volumes. The total Nordic High Yield markets outstanding volume now amounts to approximately EUR 50 billion. 

Pareto Securities is the largest player in the Nordic High Yield market with a market share exceeding 25%. Pareto Securities assisted 82 issuers which raised a total of EUR 6 billion in 2021.

On Thursday 17 March, Pareto Securities will host its annual Nordic Corporate Bond Conference in Stockholm. The conference is the largest of its kind in Scandinavia and one of the largest bond conferences in Europe. The Nordic Corporate Bond Conference brings together numerous leading issuers and investors to extend the relationship and present its businesses and current performance.

Markus Wirenhammar, Head of Investment Banking at Pareto Securities AB:

“The total Nordic bond market has grown strongly over the past decade and has developed to a truly pan-Nordic market and an increasing share of European investors and companies have participated in the Nordic bond market. In fact, non-Nordic issuers raised 25% of the total capital in 2021. In terms of investors, we are pleased to see that the market attracts not only local investors, but gain substantial interest and participation from the UK, continental Europe, the United States, the Middle East and Asia, and their share continues to grow.”

Green Bonds and Sustainability-Linked Notes were appreciated by both investors and issuers in 2021 and Pareto Securities anticipates the trend to continue, on the back of demand from investors and strong ESG-focus amongst Pareto Securities’ corporate clients.

“We believe in a continued growing trend in the proportion of green bonds. In addition, we believe the sharply increasing share of sustainability linked bonds will also continue as the instrument is better suited for small and medium-sized companies, as the bond capital here can be used more freely and the company's ESG agenda is emphasized”, says Wirenhammar.

Last year about 800 people attended the Nordic Corporate Bond conference. This year the conference is arranged as a 100 per cent virtual event and about 70 issuers with outstanding bonds will present their activities and conduct 1-1 meetings with investors. 

For more information, please contact:

Ingeborg Magnusson
Corporate & Client Communication Manager
+46 73 761 38 34
Ingeborg.magnusson@paretosec.com 

Pareto Securities is an independent full-service investment bank with a leading position in the Nordic capital markets. Pareto Securities AB offers Swedish and foreign institutions, companies and private individuals investment services related to trading in stocks, shares in SPV’s and fixed income instruments, wide coverage both within equity- and credit research. Furthermore, Pareto Securities investment banking offers ECM, M&A and DCM services as well as arrangement and syndication of new investment projects, arrangement and syndication of sale and leaseback structures within real estate, infrastructure and shipping/offshore. Pareto Securities AB is part of the Pareto Securities group and is headquartered in Oslo, Norway, with more than 450 employees located in offices in Norway, Sweden, Denmark, Finland, United Kingdom, Germany, Switzerland, USA, Singapore and Australia.