On Thursday 22 February 2024, Luxembourg's Ministry of Finance announced details of a new bond that has been issued.
The statement confirmed that state treasury successfully placed a bond issue of €1.25 billion to strengthen the state's liquidity cushion in the context of a budgetary situation which remains tight.
The loan has a maturity of 10 years and a rate of 2.875%.
The public debt will amount, after this loan, to approximately €21.6 billion, or a ratio of 25.7% of GDP.
As of 2 October 2024, Luxembourg will be required to repay a loan of €500 million, contracted in 2018. As things currently stand, the level of debt will decrease at that time to approximately €21.1 billion, or 25.1% of GDP.
After the subscription book was opened in the morning, markets reacted positively, with demand largely exceeding supply (oversubscription), which underlines the attractiveness of Luxembourg as a sovereign issuer benefiting from an AAA.
The investors, all described as "high quality", are mainly European institutional players.
Spuerkeess, BIL, BGL BNP Paribas, Barclays and HSBC contributed to the operation as joint lead managers. The loan will be listed on the Luxembourg Stock Exchange.
