Defence bonds were distributed for EUR 85.6 million across recent issues
From 26 May to 8 June, individuals, businesses and other organisations acquired defence bonds for a record amount of EUR 85.6 million, resulting in 2,201 transactions. New issues of defence bonds– 6-month, 1-year, 2-year, 3-year maturity – are available again starting from today. They will be subject to an annual interest rate from 2.6% to 2.8%.
Since the launch of the defence bond distribution in 2024, buyers have purchased these bonds for a total of EUR 668 million across 40 issues (of which EUR 85.6 million through the 37-40 issue distribution that ended on Monday).
From 26 May to 8 June, four different maturity issues were distributed:
- 6-month maturity – defence bonds of this issue were placed for EUR 60.4 million (962 transactions): Swedbank concluded 769 contracts for the purchase of defence bonds of this issue for EUR 55.5 million, SEB – 191 contracts for almost EUR 4.9 million and Orion Securities – 2 contracts for EUR 5,100. This 6-month maturity issue will be subject to 1.25% of the half-yearly interest rate and will be redeemed on 8 December 2026;
- 1-year maturity – defence bonds of this issue were distributed for almost EUR 22.3 million (1,010 transactions): Swedbank concluded 771 contracts for the purchase defence bonds of this issue for EUR 13.2 million, SEB – 239 contracts for almost EUR 9.1 million. This 1-year maturity issue will be subject to an annual interest rate of 2.5% and will be redeemed on 9 June 2027;
- 2-year maturity – defence bonds of this issue were distributed for EUR 1.9 million (121 transactions): Swedbank concluded 87 contracts for the purchase of defence bonds of this issue for EUR 1 million and SEB – 34 contracts for almost EUR 0.9 million. This 2-year maturity issue will be subject to an annual interest rate of 2.6% and will be redeemed on 9 June 2028;
- 3-year maturity – defence bonds of this issue were distributed for EUR 0.9 million (108 transactions): Swedbank concluded 85 contracts for the purchase of defence bonds of this issue for EUR 0.6 million, SEB – 22 contracts for EUR 0.3 million and Orion Securities – 1 contract for EUR 400. This 3-year maturity issue will be subject to an annual interest rate of 2.7% and will be redeemed on 9 June 2029.
Since February, defence bonds have been distributed uninterruptedly: new defence bond issues are available again starting from today.
On 9-22 June, the following 4 new defence bond issues were distributed:
- 6-month maturity – it will be subject to a half-yearly interest rate of 1.3% (redemption on 22 December 2026);
- 1-year maturity – it will be subject to an annual interest rate of 2.6% (redemption on 23 June 2027);
- 2-year maturity – it will be subject to an annual interest rate of 2.7% (redemption on 23 June 2028);
- 3-year maturity – it will be subject to an annual interest rate of 2.8% (redemption on 23 June 2029).
Defence bonds are targeted Government Savings Notes (GSNs) to finance defence needs.
Anyone wishing to purchase defence bonds can do it through dealers selected by the Ministry of Finance – Swedbank, SEB and Orion Securities. Natural and legal persons can acquire defence bonds in Swedbank, SEB online banks, Orion Securities online platform, also in SEB bank branches. More information about acquisition of defence bonds is available www.gynybosfondas.lt and on the website of the Ministry of Finance.
When the time comes to redeem defence bonds, nothing needs to be done - the money for the purchased defence bonds and the interest due on them will automatically be transferred to the same account from which the payment for the purchased defence bonds was made.
The preliminary schedule for issuance of defence bonds is updated on a monthly basis and published on the website of the Ministry of Finance.
The interest rate on defence bonds for each issue is estimated on the basis of the average interest rate on borrowing by the Government on behalf of the State for an appropriate period. The interest rate is estimated and published along with other terms and conditions of the defence bond distribution on the website of the Ministry of Finance one working day before the start of the defence bond distribution at the latest.
More information on defence bonds can be found in the dedicated section “Frequently Asked Questions” here.