Large US Corporations Massively Attract European Loans - Media.

American companies are actively using euro loans, as they are much more advantageous than loans in the US.

According to Bloomberg, in the first months of 2025, these companies issued eurobonds worth 23.4 billion euros ($24.3 billion), a record since 2007. Among the main borrowers are T-Mobile US Inc. and IBM, as well as leading Wall Street banks, reports Economic Truth.

The reason for such demand is the difference between central bank interest rates. The deposit rate of the European Central Bank (ECB) is 175 basis points lower than the rate of the US Federal Reserve (Fed). This allows companies to save on borrowing costs, especially if they do not need to convert the debt into dollars.

Last year, American corporations placed 108 billion euros of bonds in Europe - the largest volume in the last five years. But in 2025, demand is rising even more as businesses try to anticipate the consequences of Donald Trump's policies.

Rate Cuts Expected

It is predicted that the ECB will cut rates three more times this year (currently at 2.75%), while the Fed will do so only once (current level - 4.5%).

The difference in rates is explained by concerns about the economic situation in Europe and the strengthening of protectionism in the US.

Last week, IBM issued bonds worth 3.5 billion euros and raised another 4.75 billion dollars in the US, packaging a total of nine tranches. The interest rate of five-year eurobonds was 2.9%, while the similar dollar-denominated debt had a rate of 4.8%.

T-Mobile USA last week issued eurobonds worth 2.75 billion euros in three parts. According to Bloomberg, the seven-year debt allowed the company to save about 9 basis points on swaps, and the other tranches cost about the same as if T-Mobile had raised funding in the US.