Introduction
In calendar week 26 of the year 2025, the German SME bond market experienced significant success with the impressive debut issue of Formycon AG. This debut as a Nordic Bond under Norwegian law attracted great attention and led to over-subscription, reflecting high investor interest.
Details about the bond
- Issue volume: Increased to 70 million euros (originally planned for 50 million euros)
- Legal framework: Nordic Bond, issued under Norwegian law
- Interest rate: Variable interest based on the 3-month EURIBOR plus a fixed coupon of 7.00% per annum.
- Interest payments: Quarterly
- Maturity: Until the end of 2029
Market reaction and significance
The strong over-subscription led to a shortened subscription period and limited allocation, underscoring confidence in Formycon’s growth strategy. CFO Enno Spillner emphasized that this financing fits optimally with the phase of the company’s development and supports the transition to sustainable profitability.
Context in the SME bond market
Despite volatile conditions in the first half of 2025, the SME bond market appears robust. Several medium-sized companies, including Homann Holzwerkstoffe GmbH and Werder Bremen, have utilized bonds for financing, signaling confidence in this instrument.
Conclusion
The successful issuance by Formycon signals investor interest in innovative biotech companies and the attractiveness of structured investments in the mid-market. This holds true even in challenging market conditions.