German multinational conglomerate Siemens has issued a digital bond worth €60m, with a maturity of one year, underpinned by a public blockchain. It is one of the first companies in Germany to issue a blockchain-based digital bond since the country’s Electronic Securities Act was put into effect in June 2021. The bond’s blockchain-based issuance makes paper-based global certificates and central clearing unnecessary, and it can be sold directly to investors without requiring a bank to act as an intermediary.
Ralf P. Thomas, Chief Financial Officer of Siemens AG, said that the company’s digital bond issuance makes it a pioneer in the ongoing development of digital solutions for the capital and securities markets. “With our innovative products and technologies, Siemens supports the digital transformation of its customers with great success. It is therefore only logical that we test and utilize the latest digital solutions in finance, too,” he added.
The bond was issued without engaging established central securities depositories and the payment was made using classic methods as the digital euro was not yet available at the time of the transaction. The bond registrar for the transaction was Hauck Aufhäuser Lampe Privatbank AG, while DekaBank, DZ Bank, and Union Investment invested in the bond. By using blockchain technology to issue its digital bond, Siemens has capitalized on the Electronic Securities Act’s new possibilities, potentially paving the way for more German companies to embrace digital bonds in the future.
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