Bpifrance has successfully issued its first bond under the European Defence Bond Label on Euronext, raising €1 billion to support companies across the French and European defence sector. This landmark transaction highlights the bank’s role as a catalyst for financing strategic players in the defence ecosystem, particularly SMEs and mid-caps, while offering investors a unique opportunity to access defence-related assets.
Strengthening Europe’s defence ecosystem
The five-year bond, maturing on 25 November 2030, was priced at 2.75% and attracted strong investor interest, with a final order book of over €3.8 billion from 98 investors. This robust demand, spanning banks, asset managers, central banks and official institutions, reflects confidence in Bpifrance’s expertise and commitment to transparency, accountability, and the defence sector’s strategic importance.
Proceeds from the issuance will fund and refinance loans dedicated to SMEs and strategic companies in the Defence Industrial and Technological Base (BITD), specialised groups such as GICAT, GIFAS and GICAN, as well as export financing for European defence projects.
Pioneering a new market framework
This issuance follows the publication of Bpifrance’s European Defence Bond Framework in July 2025, which sets clear eligibility criteria and ensures full traceability of proceeds, excluding controversial weapons. By applying this methodology, investors can engage confidently with a sector critical to European strategic autonomy.
“The European Defence Bond initiative strengthens the strategic autonomy and competitiveness of the defence industry,” said Nicolas Dufourcq, Chief Executive Officer of Bpifrance. “This milestone reinforces our commitment to supporting innovative companies while focusing on SMEs and mid-caps that are vital to the sector’s value chain.”
Leading by example
By issuing the first European Defence Bond from an SSA, Bpifrance demonstrates how capital markets can mobilise private funding to support defence and security initiatives while maintaining full traceability and accountability. The bank’s approach provides a blueprint for future issuances and highlights the potential for the European Defence Bond Label to scale beyond France, attracting interest across the continent.
Euronext is proud to support issuers like Bpifrance that enable strategic projects, strengthen European defence capabilities, and foster long-term growth and innovation.
Want to learn more?
Visit our dedicated webpage to learn more about the European Defence Bond Label and its role in financing Europe’s defence and security priorities.