Arendt & Medernach advises on Luxembourg’s inaugural Defence Bonds issuance

Experts involved in the Deal

Arendt & Medernach acted as legal adviser to the joint lead managers — Banque et Caisse d’Épargne de l’État, Luxembourg, Banque Internationale à Luxembourg S.A. and BGL BNP Paribas — and the co-managers Banque Raiffeisen and Banque de Luxembourg on the inaugural EUR 150,000,000 Defence Bonds issuance by the Grand Duchy of Luxembourg.

This transaction marks a historic milestone as the first public offering under Luxembourg’s newly established Defence Bond Framework and introduces a distinctive feature as the issuance is initially exclusively offered to retail investors, setting it apart from previous sovereign bond offerings traditionally reserved for institutional investors.

Arendt supported the banks and the State Treasury throughout the process by structuring and coordinating the transaction and investor information documentation and ensuring compliance with Luxembourg law requirements. The Defence Bonds are unsubordinated, unsecured debt securities with a fixed annual interest rate of 2.25%, maturing on 5 February 2029 and listed on the Luxembourg Stock Exchange.

Further information on the Defence Bonds is available at defencebond.public.lu