Corporate Financing
Per 31 December-23
Corporate Bond and Loan Markets
European corporate loan volume down by almost 20% and bond volume up 15% in 2023 compared to 2022; IG spreads remained stable throughout 4Q23
European corporate loans (left) and bonds (right) – volume and number of transactions
Corporate bond spreads in basis points (per Dec-23)
Source: PwC Research, Eikon
Schuldschein Market
Schuldschein market stays significantly behind record year of FY22 with 23% lower transaction volume
Schuldschein (SSD) issuance volume
Given the challenging market environment, the Schuldschein market is progressively falling behind its performance in 2022, yet it continues to demonstrate resilience….
The Schuldschein market began 1Q23 on a strong note, with an issuance volume of EUR 8 billion, representing a significant increase of 50% compared to 1Q22. However, since then, the market has experienced a slowdown, declining overall by -23% in 2023 compared to 2022.
…with ~60 % of the issuance volume coming from Consumer Discretionary and Industrial in 4Q23.
The biggest Schuldschein issuance in 4Q23 came from the French company SEB SA with a volume of c. €446m, followed by the German company Flughafen München GmbH (€425m).
Issuance volume by industry in 4Q23
Number of issuances by geography in 4Q23
The SSD market always has been heavily dominated by issuers from Germany in the past and continues to be in 4Q23 – however, ~35% of issuances came from other countries, on the forefront Austria and France.
The biggest share of issuances from countries other than Germany comes from Austria (17%), France (8%), Netherlands (5%), Denmark (4%), and Luxembourg (2%).
Source: PwC Research, Eikon
ESG-linked Debt
Sustainable aspects have become a decisive feature in debt markets issuance; but ESG-labeled debt is performing in line with subdued market environment as issuances are down 17% over the previous year
Total global ESG-labeled issuance by category (in USD bn)
ESG-linked corporate debt issuance across sectors in Europe
Source: PwC Research, Eikon, Scopegroup
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