French financial services giant Societe Generale has issued about $112 million worth of bonds in the form of a security on the public .
today, the investment bank used the OFH (obligations de financement de l’habitat, or home financing obligations) to represent 100 million euros of , a type of security that is backed by specific assets but remains on the issuer’s balance sheet.
The pilot was designed by Societe Generale’s subsidiary Societe Generale FORGE, “one of the 60 internal startups launched via the Internal Startup Call, the Group’s intrapreneurial programme,” the company said.
Big Four professional-services firm PwC advised the project on technology and the French law firm Gide Loyrette Nouel was appointed a legal advisor, SocGen said.
“This live transaction explores a more efficient process for bond issuances,” the firm said in a press release, adding:
“Many areas of added value are predicted, among which, product scalability and reduced time to market, computer code automation structuring, thus better transparency, faster transferability and settlement. It proposes a new standard for issuances and secondary market bond and reduces cost and the number of intermediaries.”
Societe Generale has been involved in a number of enterprise projects. It was a founding member of the IBM-powered trade finance platform in 2017 and commodity platform in 2018.
Earlier this month, Societe Generale-owned private bank and wealth manager Kleinwort Hambros it had launched an exchange-traded note (ETN) with a focus on investing in companies.
More broadly, a growing number of enterprises have been experimenting with public blockchains, including big players, but issuing actual digital securities by a global investment bank is rare.
In September, the Austrian government a pilot to use the to notarize the auction of a government bond worth $1.3 billion. Two months later, Spanish bank BBVA a $150 million syndicated loan on , time-stamping data on a loan issued for Red Electrica, Spain’s national electrical grid operator.
Among startups, back in 2017, Nivaura a bond denominated in ether for the London-based luxury retail startup LuxDeco.
image via Shutterstock
Published at Tue, 23 Apr 2019 19:27:31 +0000
