Credit: Pixabay
On Wednesday 10 September 2025, Luxembourg's Ministry of Finance announced that the State Treasury had successfully placed a bond issue of €2.5 billion to strengthen its liquidity buffer.
The €2.5 billion bond has a maturity of ten years and a coupon of 2.9%. After this bond, the public debt will amount to approximately €24.4 billion, or 27.2% of Gross Domestic Product (GDP).
After the subscription book was opened in the morning, markets reacted positively, with demand largely exceeding supply (oversubscription), which the Ministry of Finance said underlines the attractiveness of Luxembourg as a sovereign issuer benefiting from an AAA rating.
Bank of America, BCEE (Spuerkeess), Crédit Agricole, Deutsche Bank and Société Générale contributed to the transaction as joint lead managers. The loan will be listed on the Luxembourg Stock Exchange (LuxSE).
The investors, all described as "high quality", are mainly European institutional players (banks, asset managers, insurance companies and European institutions).
EO
