Introduction
In calendar week 26 of the year 2025, the German SME bond market recorded a significant success through the impressive debut bond issue of Formycon AG. This premiere as a Nordic Bond under Norwegian law received a great response and led to oversubscription, reflecting the high interest of investors.
Details of the Bond
- Issue Volume: Increased to €70 million (originally planned €50 million)
- Legal Framework: Nordic Bond, issued under Norwegian law
- Interest Rate: Variable interest rate based on the 3-month EURIBOR plus a fixed coupon of 7.00% p.a.
- Interest Payments: Quarterly
- Maturity: Until the end of 2029
Market Reaction and Significance
The strong oversubscription led to a shortened subscription period and limited allocation, underscoring confidence in Formycon’s growth strategy. CFO Enno Spillner emphasized that this financing is ideally suited to 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, 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 midmarket, even in challenging market conditions.