First European Defense Bond Grabs Over €2.8 Billion Orders

The first bond designed to bankroll Europe’s defense spending was sold by a French bank on Thursday, with over €2.8 billion ($3.3 billion) in orders showing strong investor interest in the sector.

BPCE SA priced a €750 million note aligned with Euronext NV’s new methodology for a “European Defence Bond,” according to a person familiar with the matter. The format is similar to green bonds in that the proceeds are ringfenced, except in this case the cash will fund military firms instead of environmentally-friendly projects.