Nasdaq OMX is expanding its First North Bond Market to Finland.
The fixed income market is an alternative marketplace, offering companies the same service as the main market but with lower listing requirements. It seeks to attract increased small- and medium-sized firms wishing to raise capital through corporate bonds ahead of tighter restrictions on banks for bond trading.
Companies listed on the First North Bond Market do not need to publish financial statements according to IFRS standards. A listing is also possible without a listing prospectus approved by the Financial Supervisory Authority.
The First North Bond Market was first launched in December 2012 in Denmark and Sweden. According to Nasdaq OMX, it offers a faster way to list corporate bonds, with improved visibility and transparency.
“Corporate bonds are a growing funding alternative to supplement traditional bank financing in particular as banks seem to continue to adjust their balance sheets,” Lauri Rosendahl, president of NASDAQ OMX Helsinki, said.
First North Bond Market isn’t the only fixed income marketplace to have launched recently. Spanish exchange Bolsas y Mercados Españoles launched a multilateral trading facility targeted at institutional investors wanting to buy corporate bonds in mid-tier firms in October last year.
Brokerage firm Nordic Fixed Income has also started Nordic Match, an electronic matching system for trading corporate bonds, aimed at providing increased liquidity and transparency.