Nordea Metro trading floor in Copenhagen
Nordea Metro trading floor in Copenhagen

SEK corporate bond issuance soars into 2020

Issuance of Swedish krona corporate bonds is hitting new highs, and Nordea holds the top spot as lead arranger.

The Swedish krona corporate bond market has already shot past 2018’s record new issue volume, with more deals expected before year-end. Nordea continues to meet with investors and issuers to close out a successful corporate bond year and prepare for another productive one in 2020.

Recent years have seen the SEK corporate bond market grow substantially from SEK 100 billion to current volumes of some SEK 180 billion, on a straight path towards SEK 200 billion in coming years. The market continues to be accessible for a broad range of issuers as it develops and deepens, with more investors becoming active.

“A highly engaged investor universe, strong fund inflows, regulation, an increase in the number of both rated and unrated issuers, reliable secondary liquidity and overall confidence in the SEK corporate bond market are among the key factors supporting the positive outlook,” says Andreas Torp, who is in charge of Nordea’s SEK Syndicate.

Connecting issuers and investors

The corporate bond market in Sweden provides access to funding for a diverse mix of companies via different instruments. The real estate sector has been a driving force in the growth, representing around 45 percent of the primary volume. At the same time, some of the largest Swedish and Nordic blue-chip corporates have turned to the krona market for sizeable issues that in the past were typically available only in the EUR market, many of them in green bond format. And to demonstrate the variety of instruments that are available, there has been a surge in supply and investor appetite for hybrid bonds in 2019, up by nearly 150 percent versus recent years.

This year Nordea has helped corporate clients issue over 100 Swedish krona transactions and maintains a top position as lead arranger in SEK corporate bond issuance.

“The mission of the people across our bond value-chain is to connect issuers and investors, and the SEK market is one of the cornerstones in this effort. It is impressive to see the growth and the depth of this market, and we are indeed looking forward to an exciting 2020,” says Philip Erlandsson, Nordea’s Head of Credit Sales.

Bloomberg Corporate Bond SEK League Table (25-Nov-19)

Nordic Corporate Eurobond Issuance 2019 YTD

The SEK corporate bond market is not the only one on a solid upward trajectory. Find out how EUR corporate bond market activity is also hitting all-time highs.

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