Webinar on February 16, 2023: "EURO PP, a Retrospective on 10 Years of Existence"

For the past 10 years, the EURO PP market has enabled numerous mid-sized companies to secure financing with longer maturities than traditional bank loans, while also diversifying their lender bases through a bond format that has historically been reserved for large corporations. The market quickly became structured with agents for borrowers, arrangers, lawyers, and investors, allowing it to achieve rapid success with nearly €5 billion in issuances per year.

However, over the past year, this growth has been hindered by rising interest rates. Indeed, similar to other bond markets, the market was cautious for several months. Since the end of 2022, it has gradually reopened with issuances that have adapted to the changing environment. In a context of rising rates leading to decreased asset values and increased financing costs, as well as the market opening up to smaller mid-sized enterprises, investors are now more attentive to covenants and guarantees or security packages.

For more than two years, the trend has been positive! Both types of bond issuances—Green Bonds (issuances aimed at financing green projects compatible with energy and ecological transition) and Sustainability-linked Bonds (loans whose characteristics, particularly financial, may vary depending on whether the issuer meets predefined environmental, social, and/or governance objectives)—have experienced significant growth to the extent that a "non-green" issuance can effectively exclude many investors.

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