Capital markets show signs of easing

Several major Swedish firms have been able to attract capital in the spring, according to a new market survey by the business daily Dagens Industri. For smaller firms capital markets remain closed, however.

The spurt of spring investments have amounted to a total of 185 billion kronor ($22.65 billion) and have benefited Swedish firms such as SEB, Nordea, SAS and Husqvarna.

Foreign firms with significant operations in Sweden, such as as well Statoil Hydro and Fortum, have also attracted capital.

“The market for primary capital to stock market listed firms is functioning well. But investors are very harsh with regard to which firms receive capital,” Thomas Westin at Nordea Corporate Finance told Dagens Industri.

Investors have been attracted by offers of both new bond loans and new share issues.

“In cool markets it is only the best that works, in hot markets everybody gets money,” Westin said to Dagens Industri.

For smaller firms and risky projects the capital markets are in principle closed.

“In an uncertain market it is difficult to get financing,” concluded Ulf Nolén, a partner at consultancy firm Deloitte.

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