Linklaters has acted for the joint leader managers of a €3 billion dual-tranche sovereign bond issue for the Grand Duchy of Luxembourg, which was placed on February 22. The bonds were more than four times oversubscribed with total investor interest of more than €12.7 billion. The lead managers of the issue, the largest ever by the Luxembourg state, were Banque et Caisse d’Épargne de l’État, BGL BNP Paribas, Banque Internationale à Luxembourg, Société Générale and Deutsche Bank. The bonds are listed on the regulated market of the Luxembourg Stock Exchange.

The issue consists of a €1.25 billion tranche with a maturity of 10 years, with a coupon of 3.0%, which received investor interest of more than €6.2 billion, and a €1.75 billion tranche maturing in March 2043, with a coupon of 3.25%, which attracted interest exceeding €6.5 billion. The issue temporarily raises Luxembourg’s sovereign debt to €21.9 billion, equivalent to 26.4% of national GDP, but it will be used to pre-finance the reimbursement of a €2 billion 10-year bond issue maturing in July 2023, as well as providing a liquidity cushion for the state finances.