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Positive Trends in the German SME Bond Market in First Half of 2025

The German SME bond market exhibited resilience in early 2025, with a notable increase in placement volumes. A total of 11 issues were recorded, amassing EUR 464 million—up 15% from the previous year. Interestingly, the average bond coupon decreased to 7.18%, reflecting a drop from 8.87% in 2024.

Diversification emerged as a key trend, with bond issuers spanning eight sectors, diminishing the traditional dominance of the energy sector. The defaulted bond volume remained minimal at EUR 10 million, indicating increased market stability.

The IR.score for SME bond issuers improved significantly to 4.05, showcasing enhanced investor communication and transparency. This upward trend suggests SMEs are better leveraging capital market experiences, fostering a more robust and diversified bond market climate.

R. H.

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