Pareto Securities is strengthening its position in a thriving Nordic High Yield bond market

Frankfurt, October 23, 2024. Pareto Securities, a leading investment bank with extensive expertise in the Nordic and German mid-market, has announced significant growth in the Nordic High Yield (HY) bond market for the third quarter of 2024. The market demonstrated continued robust activity with a total issuance volume of EUR 3.4 billion in Q3 alone, bringing year-to-date issuances to an impressive EUR 13.0 billion. Furthermore, the internationalization of the market continued this quarter. The Frankfurt branch of Pareto Securities facilitated access to debt financing via the capital markets for German companies through nine Nordic HY transactions in the year-to-date.

The Nordic HY bond market maintained its robust performance in the third quarter of 2024, with issuance volumes reaching EUR 3.4 billion. This represents an 88% increase compared to Q3 2023, making it the second strongest third quarter since 2018. With year-to-date volumes at EUR 13.0 billion, the Nordic HY market is on track for another record-breaking year, driven by continued high demand and favorable market conditions.

This growth is indicative of both resilience and an increasing interest from international issuers, including German companies. The contribution of German issuers alone up until Q3 2024 reached EUR 0.7 billion, indicating a broader shift as an increasing number of non-Nordic businesses access the bond market via the Nordic HY format. The volume of deals involving German companies has already surpassed the totals for 2023, reflecting a growing trend that Pareto Securities is helping to drive.

Notable German transactions in Q3 include the inaugural bond issuance from The Platform Group, which raised EUR 30 million. Pareto Securities also facilitated Waterland Private Equity's acquisition financing of LifeFit Group, raising EUR 140 million. Additionally, Mutares issued a EUR 135 million bond to support its portfolio growth.

With a 29% market share to date in 2024, Pareto Securities maintained its market leadership, supporting both Nordic and international clients in capitalizing on growing investor interest. In the case of EUR-denominated Nordic HY bonds and private equity-backed Nordic HY transactions, the market share achieved by Pareto was even higher, at 46% and 41%, respectively.

Christian Czaya, CEO of Pareto Securities Germany, views this as a pivotal shift for German mid-market companies: "The sustained strength of the Nordic HY bond market presents a distinctive opportunity for German issuers. It's not merely about accessing a new source of capital—this market has demonstrated its capacity to serve as a dynamic and dependable funding avenue for a diverse range of businesses."

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.