A success story about consistency, transparency and strategic foresight
Shortened version of the detailed article by iron CEO Fabian Kirchmann, published by Anleihen-Finder.
The German SME bond market has undergone turbulent development. While critics emphasise its limited quality and weak investor interest, the Essen-based family business SANHA GmbH & Co. KG impressively demonstrates how medium-sized companies can successfully use this financing instrument for sustainable growth.
Pioneering spirit and long-term vision
SANHA was one of the pioneers of the German SME bond market. When the company issued its first corporate bond with a volume of €37.5 million in 2013, the market was still young and untested. The funds were specifically invested in forward-looking areas: product innovations, digitalisation, automation and the development of new markets.
Transparency in difficult times
SANHA had to overcome both the crisis of confidence in the SME bond market in 2016/17 and the coronavirus pandemic. The company responded with two bond restructurings in 2017 and 2020. The key to investor confidence was the company's exceptional transparency: quarterly press releases, detailed reports and continuous external ratings – a rarity among SME issuers.
The fruits of strategic investments
Since 2020, it has become clear that the long-term strategy is paying off. The company has recorded an impressive average annual EBITDA growth of 31 per cent. At the same time, the EBITDA margin climbed from 9.2 to 16 per cent. This operational improvement was also reflected in the bond price, which recovered significantly by 2024.
Successful refinancing in 2024
In November 2024, SANHA successfully refinanced the existing bond with a new corporate bond, reducing the volume to around €16 million and further diversifying the financing structure. The scheduled repayment of the first bond in March 2025 underlines the company's established position on the capital market.
Sustainability as a strategic value driver
SANHA sees itself as a pioneer in sustainability. The EcoVadis Gold Status 2024 award places the company among the top five per cent of all companies assessed – a key driver of the corporate strategy.
Conclusion: a prime example of SME bond financing
SANHA's success story shows that, when used strategically and with transparent communication, the SME bond market can be a useful building block for medium-sized companies. The decisive factor was the consistent allocation of funds to forward-looking investments combined with exceptional transparency – a strategy that proved especially valuable in challenging times.
Read the full article by Fabian Kirchmann here in the Bond Finder.
Further analyses of the SME bond market can be found in our current market study.
The iron team has been supporting SANHA as a strategic advisor for investor relations and financial communications since its capital market debut in 2013.
