Issuance activity picks up, placement becomes more challenging

SME bond market H1 2026: Issuance activity picks up, placement becomes more challenging

• 16 issues (H1 2025: 11) with a placed volume of EUR 369.8 million (H1 2025: EUR 464.3 million)
• Average coupon¹ of 7.52% p.a. at prior-year level (H1 2025: 7.54% p.a.), remaining stable despite a challenging market environment
• Renewable energy with continued high issuance activity: 7 of the 16 issues are attributable to the sector
• Restructuring volume rises significantly to EUR 304.5 million; defaulted bond volume at EUR 34.0 million
• Investor communication and transparency as measured by IR.score at 3.88 points, slightly below the prior-year period (4.05)

12 August 2026 – The German SME bond market continues to hold its ground in a challenging environment. Despite changing interest rate expectations in the European bond markets, continued weak economic conditions and major geopolitical tensions such as the war in Iran, significantly more bonds came to market in the first half of 2026 than in the same period of the previous year. At the same time, issue volumes were smaller and investors acted noticeably more selectively. This is the conclusion of iron AG’s current half-yearly analysis of the German SME bond market in 2026.

More issues, lower volume – placement ratio declines to 71.9%
Issuance activity picked up noticeably in the first half of 2026, with 16 issues, 5 more than in the same period of 2025 (11 issues). Volumes, however, moved in the opposite direction: the overall target volume declined to EUR 514.3 million (H1 2025: EUR 560.0 million). The volume actually placed fell by around 20% to EUR 369.8 million (H1 2025: EUR 464.3 million). This results in an average placement ratio of 71.9%, representing a decline of 11 percentage points compared with the same period of the previous year (H1 2025: 82.9%). Excluding bonds for which no information on the placement status was available, the placement ratio in the first half of 2026 amounted to 77.6%. In addition, several subscription periods extended beyond the study cut-off date of 30 June 2026 – in some cases into early 2027 – meaning that part of the target volume can still be placed.

Stable interest coupons despite challenging market environment
At 7.52% p.a., the average coupon¹ in the first half of 2026 remained virtually at the previous year’s level despite the challenging market environment (H1 2025: 7.54% p.a.; FY 2025: 7.56% p.a.). In June 2026, the European Central Bank raised its deposit rate for the first time since 2023 in response to an energy price-driven surge in inflation, after the previously expected continuation of falling key interest rates had given way to a reassessment of the monetary policy outlook in the second half of 2025. At the same time, risk premiums increased in a market environment still characterized by uncertainty, particularly as a result of the impact of the war in Iran. Despite these conditions, coupon levels remained stable and issuance activity robust, demonstrating the segment’s continued resilience. Coupons ranged from 3.80% to 11.22% p.a.; 12 of the 16 bonds were issued with a fixed coupon, while 4 bonds – all accompanied by investment banks – had variable coupons based on the 3-month Euribor.

Renewable energy once again leads the field; own issues dominate, investment bank support has a positive impact on placement success
The issuer landscape was more concentrated than in the previous year: the 16 issuers came from 6 sectors, with renewable energy accounting for nearly half of all transactions with 7 issues. The sector thus continued its strong role from the second half of 2025 (five issues; H1 2025: one issuer). This was followed by financial services and industrial & business services with 3 bonds each; real estate, travel & leisure, and food, drinks & tobacco were each represented by one issue. 6 of the 16 bonds were fully placed, corresponding to a full placement ratio of 37.5% (H1 2025: 45.5%). The high number of own issues is particularly striking: 11 of the 16 bonds (68.8%) came to market without investment bank support (H1 2025: 45.5%, 5 of 11). The 5 transactions accompanied by investment banks achieved a placement ratio of 79.2%, while own issues placed only 52.2% of their target volume on average. 60% (3 of 5) of the bank-accompanied bonds were fully placed, compared with only 27.3% (3 of 11) of the own issues.

Frederic Hilke, Head of Financial Communications & Investor Relations at iron AG: “Financing needs among SMEs, particularly in the renewable energy sector, remain unabated, and bonds continue to be an important instrument for meeting these needs. A compelling investment case, a high level of transparency and professional preparation are critical success factors for generating sufficient investor demand in a significantly more selective market environment.”

Restructuring and default volumes rise significantly in line with broader economic conditions
The need for restructuring increased significantly during the study period: 6 bonds with a volume of EUR 304.5 million were affected by restructuring measures in the first half of 2026 – an increase of EUR 217.9 million compared with the same period of the previous year (H1 2025: 5 bonds, EUR 86.6 million). However, just under 43% of the restructured volume is attributable to a single issuer. Defaulted volume also increased: 4 bonds issued by 2 corporate groups, with a total volume of EUR 34.0 million, defaulted, significantly above the prior-year level of EUR 10.0 million.

IR.score: Transparency levels remain solid despite slight decline
At 3.88 points, the average IR.score of the 16 issuers was slightly below the prior-year period (H1 2025: 4.05). Nevertheless, the overall level remains solid: the median stands at 4.5 points, 7 of the 16 issuers achieved the maximum score of 5.0, and a total of 9 scored at least 4.5 points. The decline in the average is almost entirely attributable to a small number of less transparent issuers. Excluding one individual case that had to be rated at 0 points, the prior-year level would even have been exceeded. The numerous, predominantly retail-oriented own issues achieved an above-average score of 4.05 points on average. At the same time, the results show that capital market experience has an impact on the quality of communication: follow-on issuers achieved an average score of 4.00 points, compared with just 3.67 points for first-time issuers.

A summary of the survey is available on the iron AG website at https://ir-on.com/en/sme-bonds/.

German SME bond issues in H1 2026

Criteria for SME bonds:
Issue volume up to EUR 150 million; denomination per bond max. EUR 1,000; bond listed on a stock exchange

* Industry classification according to Industry Classification Benchmark (Dow Jones, FTSE)
** Start of stock exchange listing in H1 2026
*** 3-month EURIBOR as at 30 June 2026: 2.324%

About iron – the good guidance company
iron AG stands for trusted consulting in investor relations, financial communications, ESG, and sustainability. For over 25 years, we have supported listed small and mid-cap companies, bond issuers, as well as medium-sized and family businesses – with a strategic perspective and a clear understanding of business realities. Our clients value us as a reliable sparring partner: professional, proactive, and on equal footing. We provide sound guidance and ensure pragmatic and effective solutions.

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