Luxembourg raised €2.5 billion through a 10-year bond issue on Wednesday, attracting strong investor demand that underscored the country's triple A–status.

Luxembourg's Treasury placed a €2.5 billion sovereign bond on Wednesday, strengthening its liquidity buffer. The bond carries a 10-year maturity with a 2.9% coupon.

Following the issue, Luxembourg's public debt will reach roughly €24.4 billion, or 27.2% of GDP. The subscription book opened at 9am and closed after 12 hours due to strong investor demand, with orders far exceeding the available supply.

In a statement, the Ministry of Finance said the interest highlights Luxembourg's attractiveness as a "sovereign issuer with a AAA credit rating".

Bank of America, BCEE, Crédit Agricole, Deutsche Bank, and Société Générale acted as "joint lead managers". The bond will be listed on the Luxembourg Stock Exchange.

The investor base, described as "high quality", consisted mainly of European institutional players including banks, asset managers, insurers, and European institutions.