Novelties in defence bonds: issues with a maturity of 2 and 3 years, with interest exceeding 2%
Defence bonds are becoming even more attractive and accessible. From now on, individuals, businesses and other organisations can also purchase issues with a maturity of more than 1 year, with an annual interest rate of more than 2%.
As of today, in addition to the six-month and one-year issues that have been distributed so far, two-year and three-year defence bond issues are also offered. The interest on these bonds will be determined on the basis of the borrowing cost of the State and will be able to exceed the 2% hitherto set ceiling.
Amendments to the Law on the State Debt prepared by the Ministry of Finance, adopted by the Seimas in mid-April, regarding the abandonment of the 2% ceiling, allowed the 6-month and 1-year defense bonds, which have been placed today, to offer 2.4% annual interest, 2-year bonds – 2.5%, and 3-year bonds – 2.6%.
Minister of Finance Kristupas Vaitiekūnas notes that in order to increase the attractiveness and accessibility of defence bonds, the Ministry of Finance is consistently implementing novelties in the distribution of defence bonds.
“We were willing to make defence bonds not only patriotic, but also an equivalent investment tool – more flexible, accessible and attractive to a wider range of investors, so we have started to implement novelties since the beginning of the year,” the Minister says.
First of all, defence bonds began to be distributed uninterruptedly, rather than at two-week intervals as has been the case so far. Different maturities are also proposed. "The adopted amendments to the Law on the State Debt abolished the interest rate ceiling for defence bonds. This allows us to pay more than 2% interest on defence bonds and, at the same time, to offer issues with a maturity of more than 1 year. Moreover, from now on the interest paid on defence bonds will be more in line with the average interest rate on borrowing on behalf of the State," K. Vaitiekūnas states.
With the launch of defence bond placements in 2024, individuals, businesses and other organisations purchased the bonds for a total of EUR 362.6 million during 28 issues, of which EUR18 million in the 27th and 28th issues that ended on Monday.
From 14 to 27 April, 1-year and 6-month issues were placed:
- 1-year defence bonds issued for EUR 12.1 million (626 transactions): Swedbank concluded 509 contracts for the purchase of defence bonds of this issue for EUR 10.2 million, SEB 116 contracts for almost EUR 1.9 million and Orion Securities 1 contract for EUR 1500. This 1-year issue will be subject to a 2% annual interest rate and will be redeemed on 28 April 2027.
- 6-month defence bonds issued for EUR 5.9 million (509 transactions): Swedbank concluded 430 contracts for the purchase of defence bonds of this issue for EUR 4.3 million and SEB concluded 79 contracts for EUR 1.6 million. This 6-month issue will be subject to a 1% 6-month interest rate and will be redeemed on 27 October 2026.
Defence bonds are targeted Government savings notes (GSN) to finance defence needs.
Everyone willing to acquire defence bonds can do so through distributors selected by the Ministry of Finance, namely Swedbank, SEB and Orion Securities. Individuals and legal persons are able to purchase the defence bonds at Swedbank, SEB online bank, Orion Securities online platform, as well as at SEB bank branches. More information about the acquisition of defence bonds can be found at www.gynybosfondas.lt and on the website of the Ministry of Finance.
When the time comes to redeem the defence bonds, nothing will have to be done – the money for the redeemed defence bonds and the interest due will be automatically transferred to the same account from which the payment for the purchased defence bonds was made.
The preliminary schedule for the issue of defence bonds is updated on a monthly basis and published on the website of the Ministry of Finance.
The interest rate on the defence bonds for each issue is set taking into account the average interest rate for borrowing by the Government on behalf of the State of an appropriate maturity. The interest rate is be set and published together with other terms and conditions of the issue placement of the defence bonds on the website of the Ministry of Finance at least one working day before the commencement of the placement of the defence bonds.
More information on the defence bonds can be found in the special column “Frequently asked questions” here.
Last updated: 11-05-2026
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