Comment: €138 billion in debt – Telekom is doing the opposite of what would be necessary
One Dax group is reducing debt, while the other pays dividends and buys back shares. The stock exchange and the bond market show which strategy is now bitterly regretted.
Fresenius had net financial debt of 24.7 billion euros at the end of 2022. The healthcare company issued a 500 million euro bond in 2023 with a 5.125 percent coupon. Fresenius' debt has since decreased to 10 billion euros, allowing it to benefit from lower interest rates. In contrast, heavily indebted companies like Eon and Deutsche Telekom are facing higher interest rates on their bonds, with Eon's 1 billion euro bond issued in 2024 now yielding 4.8 percent and Deutsche Telekom's 2025 bond now yielding 4.8 percent.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
