Business · Markets · 2 hrs ago
Dax companies face more than €100 billion in refinancing by end of 2027
Companies often use bonds to borrow money, and they must repay or replace that debt when it comes due.
Germany’s Dax companies together face more than €100 billion in refinancing by the end of 2027.
The cost of borrowing has risen as bond-market conditions have become more turbulent.
For companies with good or medium credit ratings, bond yields rose from an average of 3.5% to 4.5% over the past year.
The increase was especially sharp in the latest four weeks, when yields climbed from 4.0% to 4.5%.
Companies that must issue large amounts of bonds soon, and those with weak credit ratings, are especially exposed.
Higher financing costs can put further pressure on companies’ finances.
DAX companies must refinance more than €100 billion by the end of 2027.
Rising interest rates and turmoil in bond markets are increasing pressure on indebted companies.
The average bond interest rate for companies with good and medium credit ratings rose from 3.5% to 4.5% over the past 12 months.
The rate also climbed from 4.0% to 4.5% in the four weeks before publication.
The Handelsblatt Research Institute calculated the refinancing needs of DAX companies.
- Who
- DAX companies, particularly those with large bond issues due soon or weak credit ratings.
- What
- They face more than €100 billion in refinancing by the end of 2027.
- When
- By the end of 2027.
- Where
- Germany; the article is datelined Düsseldorf.
- Why
- Rising interest rates and bond-market turmoil are increasing companies’ financing costs.
This story does not have two clearly opposing sides.
The financing burden for companies has been rising for years. This trend has now intensified dramatically.
The average bond interest rate for companies with good and medium credit ratings rose from 3.5% to 4.5%.
The rate rose from 4.0% to 4.5%.
DAX companies must refinance more than €100 billion.
- Refinancing need
- More than €100 billion
- Deadline
- End of 2027
- Average bond rate
- Rose from 3.5% to 4.5% over 12 months
- Recent rate rise
- From 4.0% to 4.5% in four weeks
Sources
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