How non-euro countries have embraced the issuance of euro-denominated bonds | European Stability Mechanism Skip to main content Safety measures concerning the Coronavirus COVID-19. Read more about the measures. x print 14/05/2025 How non-euro countries have embraced the issuance of euro-denominated bonds Funding and Investment Bonds Issuance View PDF Print the blog 0:00 min Audio Stream 0:00 0:00 - 1 x + 100 The issuance of euro-denominated bonds has become increasingly popular among countries outside the euro area. This trend has contributed to the growth of the market for bonds denominated in euro, offering investors alternatives to euro area government bonds. While issuers outside the euro area do not benefit from the protection of the European Stability Mechanism (ESM) in cases of distress, as members of the euro area (EA) do, and their bonds have gained traction due to favourable terms and the diverse benefits they offer to issuers. This blog post explores the factors driving this trend, the historical context, and the advantages of issuing bonds in euros. Outstanding bonds issued by sovereigns globally amounted to above €75 trillion at the end of 2024, with almost 37% denominated in USD and 14% in euro. Issuance in euro has shown remarkable progress since the launch of the common currency in 1999. Among the €10.5 trillion sovereign bonds denominated in euro, those issued by countries in the euro area account for the dominant share. The remaining share corresponds to an outstanding value of €400 billion and is spread globally among 50 issuing countries that chose to issue in euro rather than their national currency, the US dollar or other currencies. Evolution of euro-denominated bond issuance Cumulative euro issuance outside the euro area exceeded €1 trillion in 2024. Figure 1 below illustrates the fluctuations of yearly issuance outside the euro area, alongside cumulative issuance progress. Several factors contributed to these trends, as outlined below. Figur