Skip to content

Europe Firms That Refinance Bonds Face Highest Costs on Record

  • Cost of refinancing euro high-grade debt at 250 basis points
  • Inflation, rate rises and economic woes weigh on credit
Updated on

European companies that need to refinance their bonds have never been faced with costs this high.

The difference corporates need to pay if they sold bonds now compared to the coupons on their existing debt climbed to 250 basis points, the highest since a Bloomberg index of euro-denominated investment-grade bonds began in 1998. In other words, companies have to pay an additional 2.5 million euros ($2.4 million) for every 100 million euros that they borrow.