SME Bond Market H1 2026 Shows Increased Issuance Amid Challenges

The German SME bond market saw an uptick in issuance for the first half of 2026, with 16 new issues compared to 11 in the same period in 2025. However, the total placed volume dropped to EUR 369.8 million from EUR 464.3 million. The average coupon rate remained stable at 7.52%, showing resilience amid economic uncertainties and geopolitical tensions, notably the war in Iran.

Renewable energy led the issuance activity with 7 bonds. Despite the increased issuance, the placement ratio decreased to 71.9%, highlighting a more selective investor approach. Restructuring volumes also rose significantly, reaching EUR 304.5 million, while defaulted bond volume increased to EUR 34.0 million.

Issuer transparency, as measured by the IR.score, slightly declined to 3.88 points. Despite these challenges, bonds remain key for financing, particularly in the renewable energy sector, where demand continues to grow.