Euronext supports EU defence financing with new measures

Euronext announced on Tuesday a set of new initiatives to support Europe’s strategic autonomy, including easing financing mechanisms for defence firms and boosting investment visibility in the sector.

The pan-European stock exchange group said it would establish a European Aerospace and Defence Growth Hub by end-2025 to connect investors with companies seeking capital. It also plans to launch an EU-funded IPOready Defence programme in the third quarter to help firms prepare for stock listings, and a dedicated European defence bonds segment with fast-track listing procedures.

“European aerospace and defence companies have expressed the urgent need to invest heavily in their innovation and production capacities to guarantee Europe’s strategic autonomy for the next decade,” the group said.

The initiatives fall under a broader strategy tied to what CEO Stéphane Boujnah described as the “New ESG: Energy, Security, Geostrategy,” with Euronext set to launch indices for each of these pillars.

The announcement comes as the EU looks to bolster defence spending. In March, Commission President Ursula von der Leyen said up to €800 billion could be mobilised to support the bloc’s defence industry.

Attribution: Reuters

Subediting: M. S. Salama