The average cost of NFCs market financing decreased in June
The average 5-year cost of non-financial corporations financing decreased by 21 basis points, going down from 1.26% in May to 1.05% in June.
In June, non-financial corporations market debt grew by 4.5% as in the previous month. Bank loans remained dynamic at 7.1% over one year. Overall, the annual growth rate of financing of non-financial corporations reached 6.1% in June, after 5.9% in the previous month.
Annual growth rate, by type of financing (in %)
Average cost of financing (in %)
Source and calculations : General Directorate of Statistics
Composition of non-financial corporate debt
The average cost of bank loans to non-financial corporations is computed using the monthly interest rate applied by French banks. This indicator only covers euro-denominated loans with a term of at least one year and with an initial amount of at least one million euros. It excludes revolving term facilities and overdratfs.
The average cost of market financing is calculated on the basis of month-end actuarial rates of return of alive securities. It only covers euro-denominated securities with an initial maturity longer than one year and with a fixed coupon rate. A specific calibration process using the yield curve is performed to align different maturities with a constant 5-year maturity.
The average cost of bank loans and the average cost of market financing cannot be directly compared since they often differ in their maturity horizon.
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Financing of non-financial corporations
Published on Friday, August 9, 2019