Interest rates: How bond market turbulence is affecting German corporations
By the end of 2027, the Dax companies alone will have to refinance more than 100 billion euros. The rapidly rising interest rates are eroding the financial strength of the companies. However, there are ways out.
German companies are facing increasing financial strain due to rising interest rates and turbulent bond markets. The bond interest rate for companies with good and medium credit ratings has risen from 3.5% to 4.5% in the past 12 months. Dax companies must refinance around €30 billion in expiring bonds this year and €73.5 billion next year, with a total of €244 billion needed by 2029.
Companies with high debt, such as Deutsche Telekom with €138 billion and Bayer with €33 billion, and those with poor credit ratings, particularly medium-sized businesses, are most affected.
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.
