Following the success of the defence bond issue earlier this year, Finance Minister Gilles Roth has announced that the government is exploring the launch of housing bonds to allow citizens to invest in state-led housing projects.
Speaking in the Chamber of Deputies on Wednesday afternoon, Roth provided further details on the proposal, which he had previously hinted at in the wake of the Defence Bond’s strong reception. The government is currently working on a new package of measures aimed at addressing housing, and according to the minister, a dedicated Housing Bond could form part of the initiative.
Roth indicated that the bond could be launched as early as late 2026 or early 2027. It would feature a short maturity and an attractive interest rate, with a total volume estimated between €150 million and €250 million. The funds raised would allow citizens to participate indirectly in state-owned rental housing projects, Roth explained.
He stressed, however, that the proposal remains subject to approval by the Government Council.
The Finance Minister also announced that the state will be borrowing €2 billion later this month.
The announcement follows the successful rollout of Luxembourg’s first Defence Bond in mid-January. Subscriptions were opened at five participating banks with an interest rate of 2.25%, and all available bonds were sold out within hours.
According to the Ministry of Finance, 2,380 people participated in the initiative, investing in what was framed as Luxembourg’s “defence effort”. The age range of investors spanned from under 18 to over 90. The majority of participants – nearly 42% – subscribed amounts between €10,000 and €50,000, while 17.6% invested the maximum allowed sum of €150,000, the ministry stated in a press release.
