Defence Bonds Sell Out Fast in Luxembourg

Luxembourg launched a new form of government bond to help fund national defence, and it was met with quick success. In less than a day, all €150 million worth of defence bonds offered for public subscription were fully allocated, showing strong interest from investors. 

The three-year bonds carry a fixed interest rate of 2.25% and are designed to support national and security projects. Luxembourg residents can invest from as little as €1,000 up to €150,000 per person per bank. The interest earned is exempt from income tax for residents, making the bonds attractive to many. 

Finance Minister Gilles Roth said the rapid uptake reflects public confidence in Luxembourg’s finances and willingness to contribute to the country’s long-term security goals. Partner banks helped distribute the bonds, which will also be listed on the Luxembourg Stock Exchange. 

Under the government’s broader defence strategy, this financing tool offers citizens a way to invest directly in defence while earning a steady return. The Treasury will report annually on how the funds are used, ensuring transparency around the projects supported by these bonds. 

This first issuance marks an innovative step in Luxembourg’s approach to public funding for national priorities. 

Read more: https://gouvernement.lu/fr/actualites/toutes_actualites/communiques/2026/01-janvier/16-roth-defence-bond.html

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