Europe’s Issuers Returning From Summer Feel High Debt Cost Pinch
- Funding costs have risen sharply in wake of rate-hike campaign
- Issuers face higher ‘maturity walls’ in 2025 and 2026
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Companies bringing a flurry of investment-grade deals to the European bond market in a post-summer sales rush are discovering how much more expensive raising new financing has become.
The average coupon for the 16 euro-denominated high-grade corporate bond sales, excluding financial firms, since the start of the month is 3.9%, according to data compiled by Bloomberg. That compares with the 1.3% average for the coupons of similar high-grade corporate debt coming due during 2023.