France Télécom, the debt-laden French telecoms company, could see its funding costs skyrocket if it decides to press ahead with a widely touted euro bond issue before the end of next month.

France Télécom, which has €4bn ($3.6bn) of floating-rate notes maturing in October, will have to pay investors handsomely to buy new bonds if it uses the bond markets to refinance the deal, analysts said.