Groupe BPCE makes first European-labeled “Defense Bond” debt issuance on Euronext

The first financial institution in Europe to issue a security dedicated to the defense sector is Groupe BPCE, which acquired Novobanco.

In a press release, Euronext congratulates Groupe BPCE on the listing of the first security issued by a financial institution in Europe dedicated to the defense sector, with the Euronext European Defense Bond Label. The €750 million senior unsecured security issued by Groupe BPCE was listed on Euronext on September 5, 2025.

"On September 5, 2025, Groupe BPCE successfully listed on Euronext the first European defense bond issued by a financial institution in Europe," the statement reads. The placement of this €750 million senior unsecured bond with a five-year maturity was organized by BPCE and distributed by Natixis Corporate & Investment Banking (Natixis CIB).

The funds raised will be used to finance and refinance assets of companies active in the European defense and security sector across the entire value chain, as well as contracts related to the development, manufacture or production of specialized equipment in these areas.

Senior bonds are intended to finance defense and security projects. They are a new instrument for financing defense technology and infrastructure projects, reports Reuters, citing the IFR capital markets news service.

Euronext introduced the new European Defence Bond Stamp on 10 July 2025. This stamp is a voluntary, market-driven initiative for listed bonds, aiming to direct private capital into eligible defence and security projects in Europe.

Euronext emphasizes that "the success of the issuance demonstrates the strong market interest in this pioneering initiative, with demand exceeding €2.8 billion from more than 140 investors. This reflects the trust placed in Groupe BPCE and its commitment to the European defense and security sector."

Bloomberg estimates that the annual interest rate could range between 3.9% and 2.8%, although the IFR states that the coupon rate will be 3.167%.