- 16 Issues (H1 2025: 11) with a placed volume of 369.8 million EUR (H1 2025: 464.3 million EUR)
- Average coupon rate of 7.52 % per annum. at the same level as the previous year (H1 2025: 7.54 % p.a.), stable despite a challenging market environment
- Renewable Energy with consistently high issuance activity: 7 of the 16 issuances are attributable to the sector
- Restructuring Volume rose significantly to 304.5 million EUR; bond redemptions totaled 34.0 million EUR
- Investor Communication and Transparency According to IR.score At 3.88 points, slightly below the same period last year (4.05)
Cologne, August 12, 2026 – The German SME bond market is holding its own in a challenging environment. Despite shifting interest rate expectations in European bond markets, a persistently weak economic situation, and major geopolitical tensions such as the war in Iran, significantly more bonds were issued in the first half of 2026 than in the same period of the previous year. At the same time, transaction volumes were smaller, and investors were noticeably more selective. This is the conclusion reached in iron AG’s latest half-year analysis of the German SME bond market in 2026.
More Issuances, Lower Volume – Placement Rate Declines to 71.9 %
Issuance activity picked up noticeably in the first half of 2026, with 16 issues—a total of 5 more than in the same period of 2025 (11 issues). Volumes, however, moved in the opposite direction: The target volume fell to 514.3 million EUR (H1 2025: 560.0 million EUR). The actual volume placed declined by approximately 20 % to EUR 369.8 million (H1 2025: EUR 464.3 million).
This results in an average placement rate of 71.9 %, representing a decline of 11 percentage points compared to the same period last year (H1 2025: 82.9 %). Excluding bonds for which placement status data is not available, the placement rate for the first half of 2026 amounts to 77.6 %. In addition, several subscription periods extended beyond the study cutoff date of June 30, 2026—in some cases until early 2027—meaning that a portion of the target volume can still be placed.
Stable Interest Coupons Despite a Challenging Market Environment
At 7.52 % per annum, the average coupon was1 (H1 2025: 7.54 % p.a.) remained nearly at the previous year’s level despite the challenging market environment (H1 2025: 7.54 % p.a.; Full Year 2025: 7.56 % p.a.). In June 2026, the European Central Bank raised the deposit rate for the first time since 2023 in response to an energy-price-driven surge in inflation, after the previously expected continuation of falling key interest rates was replaced by a reassessment of the monetary policy outlook in the second half of 2025.
At the same time, risk premiums rose in a market environment marked by persistent uncertainty, particularly as a result of the impact of the war in Iran. Despite these conditions, coupon levels remained stable and issuance activity remained robust, demonstrating the segment’s continued resilience. The coupon spread ranged from 3.80 % to 11.22 % p.a.; 12 of the 16 bonds were issued with a fixed coupon, while 4 bonds—all of which were bank-sponsored—had a floating coupon based on the 3-month Euribor.
Renewable energy once again leads the field; own issues dominate, investment bank support has a positive impact on placement success
The issuer landscape was more concentrated than in the previous year: The 16 issuers came from 6 sectors, with renewable energy accounting for nearly half of the transactions, with 7 issuances. The sector thus continued its strong performance from the second half of 2025 (5 issuances; H1 2025: one issuer). This was followed by financial services and industrial & business services, each with three bonds; Real estate, travel & leisure, and food, beverages & tobacco were each represented by one issue. Six of the 16 bonds were fully placed, resulting in a full placement rate of 37.5 % (H1 2025: 45.5 %).
The high number of self-issued bonds is striking: 11 of the 16 bonds (68.8 %) were brought to market without bank underwriting (H1 2025: 45.5 %, 5 out of 11). The 5 bank-led transactions achieved a placement rate of 79.2 %, while self-issued bonds placed an average of only 52.2 % of their target volume. 60 % (3 out of 5) of the bank-arranged bonds were fully placed, but only 27.3 % (3 out of 11) of the self-issued bonds were fully placed.
Frederic Hilke, Head of Financial Communications & Investor Relations at iron AG: „The demand for financing among small and medium-sized enterprises, particularly in the renewable energy sector, remains strong, and bonds continue to be an important tool for meeting that demand. A compelling investment case, a high degree of transparency, and professional preparation are critical factors for success in generating sufficient investor demand in a significantly more selective environment.“
Restructuring and default volumes rise significantly in line with broader economic conditions
The need for restructuring increased significantly during the study period: Six bonds with a total volume of 304.5 million EUR were subject to restructuring measures in the first half of 2026—an increase of 217.9 million EUR compared with the same period the previous year (H1 2025: 5 bonds, EUR 86.6 million). However, just under 43 % of the restructured volume is attributable to a single issuer. The volume of defaults also rose: 4 bonds from 2 corporate groups with a total volume of EUR 34.0 million defaulted, significantly exceeding the prior-year level of EUR 10.0 million.
IR.score: Transparency Level Remains Solid Despite a Slight Decline
The average IR.score for the 16 issuers was 3.88 points, slightly below the same period last year (H1 2025: 4.05). Nevertheless, the overall level remains solid: The median is 4.5 points; 7 of the 16 issuers achieved the maximum score of 5.0, and a total of 9 scored at least 4.5 points. The decline in the average is almost entirely attributable to a few issuers with a lack of transparency. Excluding one specific case that had to be rated at 0 points, the figure would have even exceeded the previous year’s level. The numerous, predominantly retail-oriented private placements performed above average, scoring an average of 4.05 points. At the same time, it is evident that capital market experience influences the quality of communication: follow-on issuers averaged 4.00 points, while first-time issuers averaged only 3.67.
A summary of the survey is available on the iron AG website at https://ir-on.com/en/sme-bonds/ available.
- Based on the 3-month Euribor as of the respective reporting dates of June 30, 2025 (H1 2025), December 31, 2025 (full year 2025), and June 30, 2026 (H1 2026). ↩︎
