Nordic bond

A Nordic bond is a senior secured bond issued under the documentation and market practice of the Oslo and Stockholm high-yield markets, widely used by shipping and offshore owners. The Norwegian Trustee, Nordic Trustee, acts as bond trustee for all holders and enforces the security, which lets issuers raise secured debt from bond investors with a covenant package lighter and faster than a bank syndicate. Tenors run around 3 to 5 years, often with a bullet repayment and a fixed or floating coupon set over the benchmark. The format gave mid-cap owners capital-markets access when bank lending tightened.