Record year for issues at Oslo Børs

So far this year the combined total value of funds raised through the equity and debt markets stands at NOK 4023 billion, which is NOK 47 billion or 13.2% more than in 2016, the previous record year.

• The previous record in the equity market, which was set in 2010, was broken last week, with NOK 62 billion in new equity raised through share issues so far this year.
• The majority of the capital has been raised through the bond market, which is to say as debt, with an impressive NOK 341 billion raised so far this year through new issues and increases to existing issues. This is NOK 20 billion more than in 2016 as a whole.

The large number of companies admitted to listing helped increase the amount raised in the equity market to new highs. 21 companies were admitted to Oslo Børs’ marketplaces in 2017, the highest number since 2007. The newly admitted companies raised a combined total of NOK 10.5 billion in connection with their IPOs, and a further NOK 9.6 billion subsequently.

• EVRY and SpareBank 1 Østlandet were the biggest IPOs of the year, raising NOK 3.8 billion and NOK 2.3 billion respectively.
• Borr Drilling, Northern Drilling and MPC Container Ships in particular helped boost the amount raised in post-IPO equity funding, with Borr Drilling’s NOK 5.2 billion private placement representing the largest equity placement in 2017. MPC Container Ships, a Merkur Market company, raised NOK 2.1 billion through two issues, the second of which was the largest ever to take place on Merkur Market.

Banks, municipalities, corporate bonds and green bonds made 2017 a record year for the bond market. The NOK 321 billion raised last year was exceeded earlier in December.

• Banks are choosing to finance their increased lending by listing bonds, and were responsible for two in every three kroner borrowed at Oslo Børs in 2017.
• Norwegian municipalities continue to flock to the stock exchange as a result of their need to raise new funds and to refinance old debt as well as the better borrowing terms listing bonds allows them to achieve. 72 municipalities have now listed bonds on Oslo Børs worth a combined total of NOK 84 billion.
• Furthermore, 2017 has also seen an upsurge in high yield and corporate bonds, with many new borrowers using this market as well as new issues from existing borrowers who had not done so in recent years.
• A new green record has also been set at Oslo Børs recently: more has been raised by issuing green bonds in 2017 than ever before, with the proceeds from green bonds being used for environmentally friendly purposes.