Luxembourg’s Finance Ministry secured a new loan on Monday, raising €2.5 billion in a bond issuance with a 10-year maturity and a coupon of 3.125%. As a result, the country’s public debt now stands at €26.6 billion, equivalent to 28.4% of GDP.
According to a press release by the Finance Ministry, the bond was issued by the State Treasury on Monday, 16 March 2026 in order to strengthen Luxembourg’s liquidity buffer. The issuance attracted strong interest from investors, with demand exceeding supply shortly after subscriptions opened at 9.30am, and the operation closing just over two hours later.
The continued high level of investor interest is linked to Luxembourg’s triple-A credit rating, according to the press release. The bond will be listed on the Luxembourg Stock Exchange.
The press release further notes that Barclays, BGL BNP Paribas, Citi, Société Générale, and Spuerkeess acted as joint lead managers for the transaction. The investors involved were predominantly high-quality institutional actors, mainly European banks, asset managers, insurance companies and European institutions.
