IR.on Aktiengesellschaft
29.07.2025 - 12:33:53Positive development of the SME bond market in the first half of 2025: Rising placement ratio, lower coupons
| IR.on Aktiengesellschaft / Key word(s): Study/Bond 29.07.2025 / 12:33 CET/CEST The issuer is solely responsible for the content of this announcement. 11 issues with a placed volume of EUR 464 million, an increase of 15 % compared to the same period of the previous year Average coupon of 7.18% p.a. significantly below the prior-year period (8.87% p.a.) Energy sector down: Higher sector diversification among bond issuers Defaulted bond volume of just EUR 10.0 million in the first half of 2025 SME bond issuers perform significantly better in IR.score - higher number of follow-on issues and public offerings decisive Cologne, 29 July 2025 – The German SME bond market continues to defy the harsh capital market climate. In an environment characterized by geopolitical tensions and economic uncertainty, the market proved to be robust and receptive in the first half of 2025. The placement volume increased significantly compared to the same period of the previous year - even though average interest coupons fell noticeably. The figures speak for themselves: the recovery trend, which was already apparent in 2024, has continued to consolidate. This is the conclusion of iron AG's current half-yearly analysis of the German SME bond market. Number of issues stable, placement ratio increases significantly - investor interest remains high The number of issues in the first half of 2025 remained at the previous year's level: ten companies issued a total of eleven bonds - exactly the same number as in the same period in 2024. What has changed noticeably, however, is the placement momentum: the volume actually placed rose by around 15% to EUR 464 million (H1 2024: EUR 405 million). Measured against the overall target volume of EUR 560 million, this results in a significantly improved average placement ratio of around 83% (H1 2024: 71%). The remarkable aspect about this is that three of the eleven issues were included in the calculation with an assumed placement volume of zero euros because no information was communicated by the issuers on the volume already placed. Adjusted for these bonds, there was even an arithmetical over-placement of 101% in the first half of 2025 due to tap-ups. The market thus not only showed solid demand but also signaled further absorption capacity for issuers capable of accessing the capital market. Interest coupons fall significantly - market follows monetary policy turnaround At an average of 7.18% p.a., the coupon in the first half of 2025 was noticeably lower than in the same period of the previous year - a decline of a whopping 169 basis points compared to the first half of the previous year (H1 2024: 8.87%) and 96 basis points below the annual average for 2024 (8.14%). The decline follows the overall turnaround in monetary policy, which is reducing the cost of capital and making bond issues more economically attractive again from an issuer's perspective. Full placements at previous year's level, issues accompanied by an investment bank are more successful; sector diversity instead of energy sector dominance In terms of sectors, the SME bond market was broadly diversified in the first half of 2025: Ten companies from eight different sectors ventured onto the capital market or refinanced existing bonds. While the energy sector regularly dominated the field in previous years, this time it is only represented by a single issue. Instead, the chemicals, travel & leisure and construction & materials sectors each accounted for two issues and are shaping the picture of an increasingly diverse market. With five full placements (45%), the value of fully subscribed bonds is at the previous year's level (H1 2024: five full placements, 45%). It is worth noting that each of the three initial issues in the first half of 2025 was also fully placed or over-placed on the market (H1 2024: 2/5). In the first half of 2025, six issues were accompanied by investment banks and five were own issues (previous year: seven bank-accompanied, four own issues). This corresponds to a 55% share of bank-accompanied issues (H1 2024: 64%). A clear trend continued among the six accompanied issues: as in the past, Pareto Securities was particularly active and managed three transactions - each of which was fully placed or even overplaced. Frederic Hilke, Head of Financial Communications & Investor Relations at iron AG: "The SME bond market remained remarkably robust in the first half of 2025, confirming last year's trend. It is particularly pleasing that the market's high absorption capacity has also manifested itself in initial issues. At the same time, it is once again confirmed that issuers with a high level of transparency and professional communication achieve above-average placement success." Significant decline in restructuring volume; default volume again manageable The SME bond market proved to be increasingly crisis-proof during the study period. Although the number of restructurings remained at the previous year's level with five cases, the volume affected fell significantly: instead of EUR 282 million as in the first half of 2024, only EUR 87 million was affected by restructuring measures - a decrease of around 70%. This shows that the need for retrospective interventions is decreasing. In terms of defaults, the market environment also remains stable at a low level: only one SME bond defaulted in the first half of 2025 - a volume of EUR 10 million was affected. IR.score: SME bond issuers significantly improve investor communication The significant improvement in the average IR.score to 4.05 points in the first half of 2025 is a very positive sign and marks a clear trend reversal compared to the same period of the previous year. While in 2024, first-time issuers in particular still frequently showed deficits in the fulfillment of basic transparency requirements (IR.score H1 2024: 3.41), substantial progress in the quality of investor communication can be observed this year. The high number of follow-on issues, in which issuers were able to draw on existing capital market experience, and the increased proportion of public offerings, which require a significantly differentiated preparation of information compared to private placements, played a key role in this. However, the issuers who ventured onto the bond market for the first time also largely met the basic transparency standards. Frederic Hilke: “The current result shows that professional communication is not only a competitive factor, but is increasingly understood as an integral part of a successful issue strategy.” A summary of the survey is available on the iron AG website at https://ir-on.com/kmu-anleihen/ (German only). German SME bond issues in the first half of 2025
iron AG stands for trustworthy advice in investor relations, financial communication, ESG and sustainability. We have been supporting listed small and mid caps, bond issuers, SMEs and family businesses for over 25 years - with a strategic eye and a clear understanding of the entrepreneurial reality. Our clients value us as a reliable sparring partner: professional, forward-looking and on an equal footing. We provide good guidance and ensure pragmatic and target-oriented solutions. Contact: iron – the good guidance company Frederic Hilke / Robin Terrana Mittelstr. 12-14, Haus A 50672 Köln T: +49 221 9140-9719 E: ir@ir-on.com http://ir-on.com 29.07.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com |
