A one-year state bond issued in summer 2023 raised almost €22 billion, largely attracting individual savers.
Reviewing the uptake of the bonds, Jean Deboutte, Head of Belgium's Debt Agency, noted that among the 542,000 subscriptions, 76,000 were less than €5,000.
Making an annual report presentation on Tuesday, Deboutte highlighted the record-breaking €21.896 billion that the bonds raised and the additional €150 million that this made available for the national budget. The one-year bond was not the only state-backed investment opportunity offered to Belgian residents; in March this year, one-year bonds were again issued, alongside three-year bonds. However, this time the subscriptions were limited to a total value of €6 billion.
Focussing on the summer 2023 one-year option, the Debt Agency's annual report revealed that the average subscription was €39,483 – a figure higher than with past bond issues. In addition, 76,604 subscriptions were for less than €5,000, leading Deboutte to maintain that “this was not a product for the wealthy.” Nonetheless, 115 subscriptions exceeded €1 million.
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Almost three-quarters of subscriptions (74.6%) came from Flanders, with East Flanders having the highest concentration of investors. The majority of subscribers were aged 60-65 years.
Despite the success of the low-tax state bond, Federal Finance Minister Van Peteghem does not anticipate a similar operation in the near future, at least not before September when the almost €22 billion subscribed last year will be paid back with interest. The roughly 234,000 subscribers will then have the option to immediately pay into a new state-backed investment and can do so without involving their bank, Deboutte clarified.
