Governments around the world issued a record $504 billion in syndicated bonds through banks in the first half of 2026, blowing past the previous high set during the pandemic-era spending frenzy of 2020. Italy alone accounted for roughly $81 billion of that total, cementing its role as the sovereign debt market’s most prolific borrower.
The previous record was $472 billion in H1 2020, when governments were scrambling to fund emergency COVID responses. This time, the spending pressures are different but no less urgent: defense budgets, infrastructure overhauls, and energy security are driving the borrowing binge.
Who’s borrowing and why
Italy led the pack by a wide margin, raising nearly EUR70 billion (approximately $81 billion) in the first six months of the year. That makes it the top sovereign borrower for the eighth time in the past decade.
Germany tapped the market with EUR14 billion across three syndicated deals. Berlin’s increased borrowing aligns with its recent pivot toward higher defense and infrastructure spending.
