Key facts
- Luxembourg plans to issue €250 million in three-year housing bonds.
- The bonds are aimed at retail investors and will fund affordable housing.
- The sale is scheduled for January.
- This initiative follows the successful launch of Luxembourg's defense bonds.
- The proposal requires Government Council approval.
Luxembourg is set to launch housing bonds aimed at retail investors, following the success of its earlier defense bond offering. The country plans to raise €250 million through the sale of three-year bonds, with the proceeds earmarked for affordable housing projects. Finance Minister Gilles Roth indicated that the bond could be available as early as late 2026 or early 2027, featuring a short maturity and an attractive interest rate. This initiative is part of a broader government strategy to engage retail investors, particularly for purpose-led investments.
The defense bond, launched in mid-January, proved highly popular, with all available bonds sold out within hours. It offered an interest rate of 2.25%, attracting 2,380 participants. The majority of investors subscribed amounts between €10,000 and €50,000, with some investing the maximum allowed sum of €150,000.
The housing bond proposal is still subject to approval by the Government Council. Separately, the state is planning to borrow €2 billion later this month.