Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
Large increase in corporate borrowing in the bond market
Danish non-financial corporations have, over the past 5 years, tripled their borrowing through bond issuances to kr. 565 billion. For comparison, the corporations' loans from banks and mortgage credit institutions have increased by about one third to kr. 1,631 billion. It is large Danish corporations such as Novo Nordisk, DSV, Carlsberg, and Ørsted that borrow by issuing bonds. The bonds are exclusively in foreign currencies -primarily euros - and are almost entirely owned by foreign investors. Most of the growth comes from issuances through foreign subsidiaries, which are often located in the Netherlands. The proceeds from the issuances are typically channeled back to the Danish parent company via intra-group loans.
Corporate bond issuance has reached kr. 565 billion
Note:
Nominal value of Danish non-financial corporations' own bond issuances and issuances through subsidiaries abroad. Find data on bond issuances through Danish companies in the Statbank at the following link.
In line with international trends
It is not only in Denmark that the issuance of corporate bonds abroad has become more popular. Internationally, the share of corporate bonds issued through entities in financial centers such as the Netherlands has also increased, see Bank for International Settlements, BIS, ”International finance through the lens of BIS statistics: the international dimensions of credit”, which can be found on bis.org link.