The Ministry of Finance in Luxembourg has recently announced the issuance of government bonds valued at EUR 2 billion. This was the first issuance registered in Luxembourg since 2013. The main reason for which such instruments were issued refers to the co-financing of the public investments carried out in the period of 2014-2017. Investors who are interested in setting up an investment fund in Luxembourg can find out more details on this matter from our team of financial representatives.
Important aspects related to the bond issuance
The bonds that were issued at the end of January 2017 are available for a period of ten years and they are due to expire in February 2027. Foreign investors who are interested in opening a Luxembourg fund should know that the bonds are offered for sale by the Banque et Caisse d’Epargne de l’Etat, Banque Internationale a Luxembourg and other private banking institutions.
The local market also registered a high demand for such instruments, as the overall value of the demand was 3.5 times higher than the supply.
Those interested in the governmental bonds are represented by the following regions:
• Benelux: 32%;
• Germany: 27%;
• France: 16%.
It is important to know that the governmental bonds address to the following categories of clients:
• central banks;
• fund managers.
Fund managers can address to our team of financial experts for more details referring to the Luxembourg governmental bonds.
Interest rates for government bonds in Luxembourg
Those managing an investment fund in Luxembourg should know that the government bonds are available at the fixed interest rate of 0.625%, which represents the lowest interest rate ever applied by the Luxembourg authorities on the local capital market.
It is also important to know that the interest rate is one of the most advantageous in Europe.
The governmental bonds are being used as a means through which the government of the state can provide financing for the current expenditures.
Businessmen interested in this subject are invited to contact our team of financial consultants for more details.