Resilient Performance of German SME Bond Market in 2025

The German SME bond market demonstrated resilience in 2025, despite challenging economic conditions such as geopolitical tensions and volatile financial markets. A total of 27 bonds were issued, with a combined volume of EUR 1.00 billion, down 9% from the previous year but maintaining solid levels compared to historical data. The average coupon rate decreased to 7.34% from the previous year's 8.14%, reflecting a shift towards lower interest rates.

Energy remained the dominant sector, while Kolibri Beteiligung, Homann Holzwerkstoffe and FC Schalke 04 recorded the largest bond issues. Although there was a slight decline in issuance and placement ratios, investor demand remained stable. The restructuring of 15 bonds highlighted the economic challenges faced by issuers.

Transparency improved, with an increased average IR.score for issuers. Banks expect stable market conditions in 2026, with higher transparency demands foreseen.