Nasdaq European Debt Market Expanded In 2019
- Supported by strong volume growth in Sustainable Debt and Corporate Debt.
- Nasdaq Sustainable Bond Network off to strong start with new U.S. and European issuers
Nasdaq saw another strong year for its European Debt Market, particularly in Corporate and Sustainable Debt, which saw volumes in 2019 grow with 16 and 65 percent respectively year over year.
— David Augustsson (@daugustsson) January 21, 2020
The growth of Nasdaq´s European Corporate Debt market was driven in part by the addition of Euro Medium Term Note (EMTN) programs by issuers Vattenfall, Landshypotek, Nykredit and Munifin as well as strong growth in domestic and international high yield markets. The sustainable debt market grew in all segments for the fifth consecutive year since being launched in 2015.
“Nasdaq´s European Debt Market remains attractive for both investors and issuers, and we are particularly happy about having welcomed a number of Nordic EMTN programs in 2019,” says Fredrik Ekström, Head of European Fixed Income at Nasdaq. “Sustainable debt remains a key driver for growth and we look forward to strengthening our relationships and leadership within this field with new products and initiatives in 2020.”
In total, more than 6,300 instruments with a total volume of more than €832,000 million, are currently listed on Nasdaq’s European Debt Market.
The Nasdaq Sustainable Bond Network, a platform for increased transparency in the global sustainable bond markets, has hit a number of milestones since its launch in December, most notably the addition of bonds issued by Fannie Mae, Freddie Mac Multifamily and the New York State Housing Financing Agency. To date, more than 4,000 bonds are confirmed to enter the platform.
“The feedback from issuers and investors has been overwhelmingly positive,” says Ann-Charlotte Eliasson, Head of European Debt and Sustainable Bonds at Nasdaq. “In little more than a month, we taken several steps to establish the Nasdaq Sustainable Bond Network as a leading global sustainable bond information hub, and we look forward to continuing this effort in 2020.”
In 2019, Nasdaq strengthened its company-wide commitment to sustainability through a number of internal and external ESG efforts, including ESG reporting and engagement, carbon neutrality and employee wellness. New initiatives such as a global ESG reporting guide for companies and a retail-oriented data service to monitor companies’ ESG Footprint have been launched, while interest for existing ESG products such as Nasdaq´s ESG Data Portal and the trading of ESG Index Futures have continued to grow.
Nasdaq Sustainable Debt Market – Selected 2019 highlights:
– While green bonds continue to dominate the market, 2019 saw the first social bonds listed in Stockholm and Iceland, issued by Bayport Finance and Reykjavik Social Housing
– Throughout the year, Landshypotek, Vattenfall, Nykredit and Munifin have moved listings under their EMTN programs to Nasdaq
– In March 2019, Realkredit Danmark became the first Danish Mortage Bank to issue a green bond, closely followed by Nykredit Realkredit and Nordea Kredit
– The segments for Green Commercial Papers and Green Structured Bonds, both launched at the end of 2018, have continued to grow. Listed volume has exceeded 350 million, from a number of Nordic and European issuers, including BNP Paribas and Credit Agricole
– In December, Nasdaq launched the Nasdaq Sustainable Bond Network, a platform for increased transparency in the global bond market. It builds onto the knowledge and experience Nasdaq has gained by since 2015 operating the world´s first market for sustainable bonds
Nasdaq European Debt Market is the joint brand name for all corporate bond, mortage bond, sustainable bond and structured product markets at Nasdaq Stockholm, Nasdaq Helsinki, Nasdaq Copenhagen and Nasdaq Iceland.
The trading platform has onboarded 2012 investors from 33 jurisdictions.
The exchange has launched a new ESG index and its first ESG future.
Bond Evaluated Price uses all bond transactions across the group with a proprietary model.
Client coverage will expand in the U.S. where the fixed income network has grown in the past 18 months.
The update of the Social Bond Principles accompanies a surge of issuance addressing COVID-19.