Siemens Bond issuance is yet another Triumph of Public Blockchain
Siemens, a leading German manufacturer, has unveiled its first-ever digital bond. This €60 million one-year bond is supported by a public blockchain and has a one-year maturity. According to Siemens, it is one of the first businesses in Germany to issue a digital bond.
NEW: German industry giant Siemens issues its first digital bond on blockchain.
— Blockworks (@Blockworks_) February 14, 2023
The bond has a volume of €60 million and a maturity of 1 year. pic.twitter.com/z05mjjLCXa
The report claims that bond issuance on a blockchain, as opposed to more traditional techniques, offers several advantages. For instance, it eliminates the need for central clearing and paper-based global certificates. Furthermore, the bond can be offered directly to investors without the assistance of a bank.
The bond has a face value of €60 million and a maturity of one year.
Blockchain allows bonds to be sold directly to investors and makes paper global certificates and central clearing unnecessary, the German industrial giant said Tuesday which indicates that the bond was sold directly to investors such as DekaBank, DZ Bank, and Union Investment, without the need for central clearing and paper-based global certificates. Siemens noted that the process enabled transactions to be executed much faster and more efficiently than traditional bond-issuing methods.
In all, we see that Siemens shares were marginally down Tuesday morning.
Siemens and the digital bond on blockchain: all the details
Siemens is one of the first companies in Germany to issue a digital bond in accordance with the German Electronic Securities Act (Gesetz über elektronische Wertpapiere, eWpG). German company is a pioneer in the ongoing digital transformation of capital and securities markets.
Peter Rathgeb, Corporate Treasurer at Siemens AG, shared:
“By moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past. Thanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany.”
