Refinancing risk and resilience in European debt markets
European debt markets remain resilient as corporates face a wave of refinancing. Coca-Cola HBC treasurer Dimitrios Siokis explains how proactive issuance, strong liquidity in bond and CP markets, and disciplined debt management are helping firms reduce risk.
Investment-grade corporates across Europe and the United States have entered a period of relative stability in bond prices and yields following the turbulence of the pandemic and recent geopolitical shocks.
In the US, firms are refinancing a large volume of debt—Fitch estimates roughly $400 billion of IG bonds maturing annually between 2025 and 2028—helping to explain heavy issuance. In Europe, Natixis CIB projects around €250 billion of senior-debt issuance in 2025, supported by sound fundamentals and strong investor demand.
For Dimitrios Siokis, group treasurer at Coca-Cola HBC, a Coca-Cola anchor bottler company, European markets continue to provide stability. “European Debt Capital Markets are in good shape,” he said, noting that most new issues are well covered and attractively priced. The company itself refinanced its September 2025 maturity as early as the fourth quarter of 2024, reflecting a proactive approach to managing risk.
Market platforms and liquidity tools
Siokis highlighted the strength of both the bond and commercial paper markets in Europe. The European Debt Capital Markets, he explained, are becoming increasingly attractive not only for European corporates but also for issuers based outside the region. Meanwhile, the European Commercial Paper Market has remained liquid and reliable. “The behavior we observed during the early stages of COVID did not repeat itself during the last five years,” he noted, although investors occasionally shorten maturities in response to geopolitical or interest rate volatility.
Planning ahead for refinancing
The company typically begins evaluating refinancing options several quarters before maturity. “Ideally you want to execute two to three quarters before the bond comes due,” Siokis explained. This gives the company flexibility to balance investment risk against funding costs while keeping negative carry to a minimum—something made easier in today’s flatter money-market curves.
Managing debt profiles
A core principle for Coca-Cola HBC is to avoid excessive short-term exposure. “We do not allow ourselves to be exposed to front-loaded refinancing risk for a significant part of our debt,” Siokis said. “That portion would never exceed the size of our back-stop facilities, such as our revolving credit facility.”
Looking Ahead to Budapest
With EuroFinance’s International Treasury Management in Budapest around the corner in October, Siokis said he looks forward to exchanging views on market conditions, emerging technologies, and the digitisation of treasury.
Dimitrios Siokis, group treasurer at Coca-Cola HBC will be speaking at the EuroFinance’s International Treasury Management in Budapest on the Bonds and analysing global capital markets for corporate issuers and investors with Mack Makode, VP and treasurer at Under Armour.