The first half of 2025 marked a decisive shift from balance-sheet defence to strategic deployment, with issuance patterns reflecting not just a recovery in confidence but a deliberate repositioning of funding models.
European investment-grade corporate bond issuance exceeded €100 billion in May 2025, up 22% year on year and the highest first-half total since 2021 and a new monthly record12. Even more striking is the nature of the deals: larger ticket sizes, cross-border placements, and a clear shift toward capital market funding as an alternative to traditional bank lending.
As monetary conditions stabilise and macroeconomic risks recede, this resurgence is less about cyclical rebound and more about long-term recalibration of how corporates source, structure, and signal their capital raising.
From pause to strategic re-entry
Throughout 2023 and early 2024, corporate treasurers largely adopted a defensive stance. Uncertainty over the European Central Bank’s rate trajectory, persistent inflation, and geopolitical instability curbed euro-denominated issuance. Spreads widened, investor appetite cooled, and expansion plans were deferred.
By 2025, however, the backdrop had shifted. The ECB’s decision to hold rates steady for a third consecutive quarter gave markets breathing room. Inflation in the euro area fell to 2.3% in June, close to the central bank’s target. And corporate balance sheets have remained robust, having built up liquidity during the period of uncertainty.
With the macro picture stabilising, corporate issuers are seizing the opportunity. CaixaBank’s corporate and investment banking division has seen pent-up demand converting into deal flow. This does not just apply to the domestic market in Spain – corporates around the world with near-term refinancing needs as well as longer-term strategic investments are springing back into action. One example: almost half of all the financing mobilised by the bank’s CIB division in 2024 originated in international branches.
A Convergence of catalysts
This rebound is the product of multiple reinforcing factors. This is not a flood of opportunistic refinancing – it is a more selective, higher-quality wave of issuance, tailored to a new set of investor demands.
In Q2 2025, there was a noticeable uptick in multi-tranche and hybrid structures, as corporates leveraged strong investor appetite for yield with longer-dated or subordinated instruments. ESG-linked issuance has also begun to recover, albeit with more rigorous scrutiny. Investors are asking harder questions—and issuers are responding with better transparency and clearer KPIs.
For example, CaixaBank recently acted as joint bookrunner, heading the syndicated financing for Scottish Power, for a total amount of more than €1.6 billion (a €900 million tranche and a £600 million tranche granted by the National Wealth Fund). The green financing for the development and construction of smart electricity grids owned or managed by Scottish Power in the UK had to comply with the taxonomy criteria set out in the UK’s Green Financing Framework.
Globalisation of European corporate funding
While euro-denominated issuance remains dominant, there has also been a rebound in non-euro placements by European corporates, particularly in USD. US non-financial corporates borrowed €40 billion as of 9 May, according to Bank of America data3. This trend is driven by favourable currency hedging conditions, as well as broad global investor interest in high-quality European names.
This global diversification signals a deliberate strategy: corporates are building resilience by broadening their investor base and optimising access across currencies.
Time for banks to re-calibrate?
What differentiates the 2025 rebound from previous waves of issuance is its quality. Companies are not flooding the market with opportunistic refinancing. Instead, they are tailoring structures to align with evolving investor demands. This creates a moment of recalibration for corporate and investment banks. Clients now expect more than just distribution – they want advice on everything from interest rate overlays to ESG structuring to regulatory disclosures. The ability to help clients re-enter the market smoothly, credibly, and strategically is where banks must differentiate.
The new issuance landscape is not about volume alone, it is about value. The days of commoditised bond issuance are gone. In their place is a smarter, more intentional market, where capital is raised not just to refinance but to reposition.
Banks are evolving to meet this need. So CaixaBank’s CIB business has grown from 760 employees at the end of 2024 to 850, with plans to expand to 920 by 2027. The division will explore opportunities across multiple geographies, especially in sectors with a global footprint, particularly renewable energy, civil and digital infrastructure, technology, and financial services.
The next phase of market leadership
This is not a return to business as usual. It is the opening phase of a smarter cycle where the measure of success is value created, not just volume raised. Those corporates and banks that can combine strategic foresight with disciplined market execution will define the next chapter of European capital markets leadership.
