Nordic High-Yield Market Hits Record First Half in 2025

The Nordic high-yield market set a new record in the first half of 2025, with issuance volume reaching €12.2 billion, a 30% increase from the previous year. This growth is driven by intensive refinancing activities, ongoing demand from private equity firms, and rising international engagement from both issuers and investors.

European issuers show growing interest in the Nordic HY market, attracted by its fast placement, flexible structure, and competitive transaction costs. An example is the Dutch company Flora Food, supported by KKR, which placed a senior unsecured bond worth €400 million under Norwegian law in Q2. Although 70% of the volume remains with Nordic issuers, cross-border interest signals the market's increasing international acceptance.

Germany experienced notable growth, with issuance volume in the Nordic HY format hitting €750 million, a 94% increase year-on-year, marking a new half-year record. Pareto Securities supported all these transactions, confirming its leading position in the DACH region.

Despite geopolitical-induced volatility in Q2, the market environment remained stable, with spreads quickly returning to pre-April levels. Overall, the Nordic HY market showed resilience, supported by stable liquidity and controlled investor positioning.

Pareto Securities participated in over 60% of Nordic HY transactions, handling 58 debt capital market transactions worth over €8 billion in H1 2025, maintaining its central role for mid-sized European companies.