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Financing of non-financial corporations 2019Aug

Published on 10/08/2019
The average cost of non-financial corporations market financing continued to decline in August
The annual growth rate of financing of non-financial corporations grew in August (+6.7%, after 6.3% the previous month) led mainly by market financing (+5.9% over one year, after +4.8% in July).

In August, the average 5-year cost of non-financial corporations market financing continued to decrease, reaching its lowest point at 0.46%. By contrast, the cost of bank peaked at 1.61%.

Financing of non-financial corporations
(Gross stocks and flows in billions of euros, growth rate and interest rate in %)
Outstanding amount Annual net issuance Annual growth rate Average cost of new financing (monthly average)
Aug-2019 Aug-2019 juil. 2019 Aug-2019 juil. 2019 Aug-2019
Financing of NFCs 1,691 106 6.3 6.7 1.06 1.18
- Of which : bank loans 1,057 71 7.3 7.2 1.36 1.61
- Of which : market financing 635 35 4.8 5.9 0.58 0.46
in euros 520 32 6.1 6.5
in currencies 114 4 -1.2 3.2
Annual growth rate, by type of financing (in %)
Average cost of financing (in %)
Source and calculations : General Directorate of Statistics, Economics and International
Composition of non-financial corporate debt
Non-financial corporate debt in this « Stat Info » refers to debt securities issues (bonds and negotiable debt securities) subscribed by residents and non-residents as well as to the credits granted by resident credit institutions.

Negotiable debt securities include short-term commercial papers (less than one year) and medium-term negotiable notes. Further details on loans to non-financial corporations is available in the « Stat Info » referring to loans to non-financial corporations :

https://www.banque-france.fr/en/statistics/loans/loans/loans-non-financial-corporations

Overall non-financial corporate debt also includes bank loans from non-resident credit institutions. This measure can be found in the « Stat Info » related to non-financial sector debt :

https://www.banque-france.fr/en/statistics/savings/financial-accounts/financial-accounts
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 STAT INFO - August 2019
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Financing of non-financial corporations
  • Published on 10/08/2019
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Published on Tuesday, October 8, 2019