With interest rates firmly in a higher‑for‑longer regime, refinancing has moved centre stage for European borrowers. A stacked maturity wall over the next few years is prompting earlier term‑outs and multi‑track execution across bank credit lines, public bonds, and private credit.

Basel IV’s EU implementation (CRR3/CRD6), including the 72.5% output floor and tougher standardised risk weights, is narrowing bank appetite, particularly for unrated corporates, specialised lending, and real‑estate exposures.

Practically, this means greater selectivity, shorter tenors, wider margins on revolving credit, and tighter documentation. Revolving facilities remain essential, but truly covenant‑light credit lines are rarer.

Capital markets are absorbing more duration, reflecting increased investor comfort with interest‑rate risk. Investment‑grade issuers are seeing strong demand despite current market volatility. The high‑yield market is open, but only for clean structures with strong covenants and, in many cases, security. Private credit stays competitive for bespoke deals, while Schuldschein (German PP) and Euro PP continue to serve mid‑caps seeking diversification.

“Refinancing is a process, not a point in time! Start early, run options in parallel, and structure for durability under Basel IV” recommends Manfred Steinbeisser, Aalto Capital.

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