The cheapest long-term borrowing costs on record are enticingcompanies into the bond market and allowing them to lock in ratesfor up to 100 years.
“My treasurer tells me, 'Always borrow when you can, not whenyou have to,'” said Simon Henry, chief financial officer at RoyalDutch Shell Plc.
Global borrowers from Shell in The Hague to Peoria,Illinois-based Caterpillar Inc. raised a record $368 billion thisyear from bonds maturing in 10 years or more, according to datacompiled by Bloomberg. The average yield companies pay to raiselong-dated debt worldwide fell 59 basis points this year to 4.4percent, approaching the low of 4.1 percent reached in 2013, Bankof America Merrill Lynch data show.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
