European banks will pay more to refinance 188 billion in debt
The 2027 maturities are much cheaper than current bond prices and the banking sector is the one leading the euro issuance needs for next year.
European banks will face significant refinancing costs in 2027 as their debt maturities surge. According to CreditSights, 188,000 million euros in bank debt will mature, with most needing to be refinanced to meet crisis buffer requirements. The average coupon rate for maturing investment-grade bank debt is 2.6%, while new 2026 issuances are priced at 3.7% on average. The refinancing costs are expected to rise further due to the European Central Bank's recent interest rate hikes.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
