Corporate Loan Rates Head Higher in Europe
- Borrowing costs for bonds, Schuldschein already soaring
- Utilities sector particularly affected as liquidity needs rise
This article is for subscribers only.
European companies could find it hard to bargain for the kinder interest rates that the relationship-driven corporate loan market typically offers, as inflation and tighter monetary policy begin to bite into their funders’ pockets.
Pricing is likely to rise for corporate loan borrowers in the near future, said Carlo Fontana, head of global syndicate at UniCredit SpA. “Banks’ cost of capital has gone up but it is yet to filter through,” he said.