Entry Standard for bonds is corporate bond market leader in Germany

25 April 2012

Deutsche Börse looks back on positive first year

Deutsche Börse is reflecting on a positive first year since it introduced the Entry Standard for bonds. The segment has established itself as the market leader for listed corporate bonds in Germany in terms of issue volume and the number of issues in the past 12 months. Eleven companies with 13 bonds and a total issue volume of €812 million (planned) and €530 million (placed) have used the Entry Standard for bonds as an alternative source of financing.

“The Entry Standard for bonds has established itself as an alternative platform for raising debt capital. Particularly young companies and SMEs in the real economy can use the stock exchange to raise new capital and enable sustained growth and employment,” said Alexander von Preysing, Head of Issuer Services at Deutsche Börse.

The segment includes a wide range of industries: 4 real-estate companies, 2 engineering firms and one company each in recycling, health and social care, solar power, agriculture and clothing. The companies have an average issue volume of €41 million and the total trading volume is €234 million.

Changes are planned to the regulations in this segment as part of the restructuring of the Open Market. Companies in the Entry Standard for bonds will in future be subject to an ongoing rating obligation. Company figures on debt service coverage, debts and capital structure must also be provided by already listed companies. To provide greater transparency, it is planned that companies will provide information about their placed issue volume immediately after the subscription phase, and on an ongoing basis. An additional requirement in future is that at least 10 percent of the placement must be free floating. Applicants will also be required to prove that they have checked the company’s quality and IPO readiness. Issuers benefit from the expertise of around 100 Deutsche Börse listing partners as experienced advisors.

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