Capital markets are playing a growing role in defence financing, with European companies increasingly turning to bond issuance to support a wide range of defence-related projects, from aerospace and defence systems to dual-use innovation.
Investor interest in the sector is accelerating, reflecting a shift in the perception of defence to be seen as a contributor to long-term stability and innovation. As the geopolitical landscape evolves, institutional investors are increasingly seeking efficient access to global capital, supported by transparency, visibility and credible frameworks for responsible financing.
Over the past year, defence companies across Europe have significantly increased their activity in the bond market. More than €7 billion has been raised by key players, including:
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Airbus
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Safran
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Thales
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Kongsberg Gruppen ASA
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Leonardo
More than 15 defence-related bonds are now listed on European markets, offering institutional investors direct exposure to companies advancing Europe’s defence capabilities. This signals the emergence of defence-linked bonds as a recognised and growing segment of the European capital markets.
How Euronext supports defence bond issuers
As Europe’s leading venue for bond listings, Euronext supports defence-linked issuers with transparent and efficient access to capital markets. Issuers have access to:
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A fast-track admission process
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Competitive and transparent listing fees
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High visibility with international institutional investors
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A dedicated directory of European defence bonds on Euronext Live
With over 57,000 bonds listed, and a growing number of European defence companies already active, Euronext provides a trusted and visible platform to support the financing of strategic projects across Europe.
Clarity, credibility and capital: introducing the European Defence Bond Label
To strengthen investor confidence and promote responsible capital raising in the defence space, a voluntary labelling and classification framework is being introduced: the European Defence Bond Label. This market-driven initiative helps investors identify bonds aligned with Europe’s defence, security and strategic autonomy priorities, and supports fast-track admission to Euronext markets.
The European Defence Bond Label will signal a strong commitment to strategic alignment, responsible use of proceeds, and transparent communication with market participants. As defence financing scales up, it represents a significant step in connecting capital markets with Europe’s long-term security and industrial objectives.
Who can issue bonds under the European Defence Bond Label?
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Corporates headquartered or deriving more than 50% of their revenue/CAPEX/OPEX/payroll in the EU, EEA, UK, Ukraine or other EU partner states
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Financial institutions licensed in the EU, EEA, UK, Ukraine or other EU partner states
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Sovereigns & supranationals with a European mandate.
What can Defence Bonds finance?
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At least 85% of net proceeds of bonds labelled as European Defence Bonds must finance defence, security or qualifying dual-use projects located in Europe, or directly benefitting Europe
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Examples include R&D, manufacture or upgrade of military platforms; cyber-defence; space-based ISR; critical infrastructure and logistics; supply-chain security
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Up to 15% of net proceeds may support other activities that do not contradict EU strategic objectives.
What is excluded from the European Defence Bond Label?
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Any involvement in chemical, biological or other weapons banned under international treaties; cluster munitions; non-NPT nuclear weapons
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Entities under EU sanctions or operating in embargoed jurisdictions
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Projects that breach International Humanitarian Law or materially conflict with EU foreign-policy interests.
How can issuers get the European Defence Bond Label?
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Self-declaration at listing confirming eligibility & use-of-proceeds alignment.
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Fast-track listing on Euronext markets; no second-party opinion involved.
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Annual re-affirmation: failure triggers suspension or withdrawal of the label.
Governance & evolution
Euronext administers the European Defence Bond Label. It maintains a public register of labelled bonds and consults market stakeholders for periodic updates. Revisions will track forthcoming EU initiatives such as the European Defence Industrial Strategy and EDIP.
Why have a European Defence Bond Label?
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Issuers gain quicker market access, a clear signalling tool and potential future regulatory incentives.
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Investors benefit from a transparent, comparable framework in a sector where data is scarce.
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Europe accelerates capital formation for critical defence capabilities while safeguarding ethical and legal standards.
Want to learn more?
Visit our dedicated webpage and contact the Euronext team: