Luxembourg's State Treasury has announced that the inaugural issue of the Defence Bond, which opened for subscriptions on Thursday 15 January 2026 at 14:00, was fully subscribed by Friday morning.
Luxembourg's Minister of Finance, Gilles Roth, stated: "The speed with which the entire issue was subscribed demonstrates the public's confidence in the government's actions and the soundness of our public finances, as well as their willingness to contribute to financing our national security. This success confirms the relevance of the Defence Bond as an innovative and accessible tool, and the ability of the State Treasury and our financial centre to offer innovative solutions that address current challenges."
Spuerkeess (BCEE), BGL BNP Paribas, Banque Internationale à Luxembourg (BIL), Banque de Luxembourg and Banque Raiffeisen contributed to the transaction as partner banks. The bond will be listed on the Luxembourg Stock Exchange (LuxSE).
The €150 million Defence Bond, with a three-year maturity and a fixed interest rate of 2.25%, has been structured to ensure broad accessibility, with subscription tranches starting at €1,000 and a cap of €150,000 per person and per bank. Interest on this bond is exempt from income tax for Luxembourg residents.
Under the Defence Bond Framework and in accordance with the government's commitment to transparency, the use of funds will be reported annually.
