On Tuesday 15 October 2024, Luxembourg's Ministry of Finance confirmed that the State Treasury successfully placed a bond issue of €1.25 billion, to strengthen its liquidity cushion.
The loan has a maturity of ten years and a coupon of 2.625%.
The public debt will amount, after this loan, to approximately €22.5 billion, or 27.5% GDP, as forecast in the figures of the draft budget.
The subscription book was opened around 09:00. The markets reacted positively, with demand largely exceeding supply (over subscription), so that it was able to be closed at 11:00.
According to Luxembourg's Ministry of Finance, this strong investor interest underlines Luxembourg's attractiveness as a sovereign issuer with an AAA rating.
Spuerkeess, BIL, BGL BNP Paribas, Barclays and HSBC contributed to the transaction as joint lead managers. The loan will be listed on the Luxembourg Stock Exchange.
The investors are mainly European institutional players (banks, asset managers, insurance companies, European institutions).
