First North opens bond market in Copenhagen
Exchange provider Nasdaq OMX Copenhagen has launched the First North Bond Market with an issue of corporate debt from Danish Crown, the bacon maker.
The launch in Copenhagen has created an alternative market for Danish companies seeking to raise funds by issuing debt in the domestic market.
Nasdaq OMX Copenhagen said the new market would provide companies with a more diversified set of fund raising opportunities. It is also being pitched as suitable for both listed and unlisted companies, although it is seen as chiefly beneficial for unlisted ones that are unable to meet the requirements to raise funds through regulated debt or equity markets
Preben Sunke, CFO Danish Crown, said the new bond market could become a significant one for many Danish companies, not least because it offers a competitive way to borrow money by issuing debt.
Although launched in Copenhagen, the First North Bond Market is a pan-Nordic one, as it also encompasses Nasdaq OMX Stockholm along with the Copenhagen market’s licence to operate additional services beyond the existing First North market for shares. All trading in bonds will be done on the same Genium INET platform, as used by the regulated Nasdaq OMX exchanges.
First North does not have the same legal status as an EU regulated market, which means companies there do not have to meet legal requirements for admission to trading on a regulated market.