Nordic Bond Market Surges with Record Issuance in Q3 2025

The Nordic high yield bond market saw unprecedented activity in the third quarter of 2025, with primary issuance volumes climbing to €5.1 billion, marking a 52% increase from the previous year. Cumulatively, the market has almost reached last year's record of €17.9 billion, with €17.6 billion issued so far in 2025.

This growth has been significantly driven by international demand. Noteworthy is the 32% contribution from private equity-backed issuers and the rising average deal size, now at €111 million. Key transactions included the €585 million bond by European Entertainment Group, setting a benchmark as the largest unrated PE-backed bond in the region.

Non-Nordic entities contributed 36% of the primary volume, emphasizing the increasing cross-border attractiveness of the market. Transactions of note were those of German and Dutch companies like Azerion, Muehlhan, and debut bonds from BoldR, Dywidag, and JDC.

The momentum was highlighted during the 2nd Pareto Securities’ Nordic HY German Issuers Investor Day, indicating continued robust market dynamics relative to European and U.S. counterparts, supported by a flexible framework and an expanding investor base.