Luxembourg's Ministry of Finance and the Directorate of Defence have announced the opening of subscriptions to the Defence Bond.
According to the authorities, Luxembourg is taking a "historic step" by opening subscriptions on Thursday 15 January 2026, from 14:00, to its Defence Bond, a government bond described as the first of its kind in Europe. This new financial instrument is intended to allow citizens to contribute directly to strengthening Luxembourg's defence capabilities, while offering a "safe" and "attractive" investment amid increasing international uncertainty.
Citing a "severely deteriorated" geopolitical situation, the authorities said Luxembourg is the first European country to offer the general public a sovereign bond dedicated to defence. To ensure transparency, the government will publish an annual report detailing how the funds raised are used.
Luxembourg's Minister of Finance, Gilles Roth, stated: "I am delighted to announce the launch of subscriptions to the Defence Bond. This innovative tool, designed for the general public, will contribute to financing our defence efforts while highlighting the innovative spirit of our financial centre and the State Treasury."
Luxembourg's Minister of Defence, Yuriko Backes, added: "Faced with the volatility of the security environment and the clear threat confronting the EU and NATO, we must invest more to strengthen our military capabilities and our deterrence and collective defense posture. This is a joint effort in which the citizens of Luxembourg can now participate directly."
The Defence Bond has a maturity of three years and carries a fixed interest rate of 2.25%. The interest will be exempt from income tax for Luxembourg residents. Investments are available in increments of €1,000, up to a maximum of €150,000 per person and per bank.
The capital is guaranteed and will be repaid at maturity. Subscriptions opened on 15 January and will remain available until 30 January 2026, or until the target of €150 million is reached.
Interested investors can contact one of the partner banks - Spuerkeess (BCEE), BGL BNP Paribas, Banque Internationale à Luxembourg (BIL), Banque de Luxembourg and Banque Raiffeisen - to subscribe to the bond.
Further information on the subscription process is available on the official website: defencebond.lu.
