THE ATTRACTION OF BOND FINANCING BY FOOD PRODUCING COMPANIES IN ARCTIC COUNTRIES

Abstract

The article contains an analysis of the established practices of attracting financing through the issuance of bonds on the example of companies in the agricultural and food sectors of the countries included in the Arctic zone: Denmark, Iceland, Canada, Norway, Russia, Finland, Sweden. The goal is to compile profiles of the bond market of individual countries and identify existing patterns. The research sample included 60 companies producing food products, which are also issuing companies in the debt market for the period 2015-2022. Conclusions are drawn, there are common institutional features in almost all the countries considered. Russia is characterized by an atypically large number of bonds placed, high market inertia, and high borrowing costs. On the Canadian market, the bond placement period is on average much shorter with a sufficiently large capital of organizations. In Canada, Denmark and Norway, there is a picture of hyper-concentration of the market with a focus on institutional investors. The situation is approximately similar with a much smaller number of bonds in Sweden, Iceland and Finland. The necessity of increasing the availability of the placed debt for private domestic investors was noted.

Keywords

• market
• bonds
• agricultural business
• arctic
• financing