Luxembourg issues €2.5 billion in bonds
Austin Distel, Unsplash
On 10 September 2025, the Luxembourg Treasury (Trésorerie de l'État) carried out a successful placement of €2.5 billion in sovereign bonds with a 10-year term and a fixed interest rate of 2.9%. The operation aims to strengthen budget liquidity without compromising fiscal sustainability.
Immediately after the bids were opened at 9 a.m. it became clear: demand exceeds supply several times. As a result trades were closed already by noon. Investors' interest turned out to be so high that it is possible to speak about the limit level of confidence in the borrower.
After the deal, Luxembourg's total public debt will reach approximately €24.4 billion, or 27.2% of GDP. Even with the new loan, the ratio remains one of the lowest in the eurozone, reinforcing Luxembourg's reputation as an exemplary issuer.
The bulk of buyers were institutional investors from Europe - banks, insurance companies, asset managers and European institutions. All this emphasises the high quality of demand rather than speculative interest.
A group of leading financial players was responsible for the placement: Bank of America, BCEE, Crédit Agricole, Deutsche Bank and Société Générale acted as joint lead managers. The securities will be listed on the Luxembourg Stock Exchange.
