World Bank is the First Issuer on Euroclear’s New Digital Securities Platform
WASHINGTON – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) issued the first digital securities on a new Digital Financial Market Infrastructure (D-FMI) distributed ledger technology platform developed by Euroclear (Digitally Native Notes). The 3-year Digitally Native Notes raised EUR 100 million to support the financing of World Bank’s sustainable development activities.
Powered by distributed ledger technology (DLT), Euroclear’s D-FMI enables the creation, issuance, and settlement of fully digital international securities. The securities are governed by English law. Digitization has the potential to improve transparency, increase efficiency, and reduce operational risks and costs in securities processing. By connecting to Euroclear’s traditional settlement platform for secondary market operations, investors can have full access to all Euroclear System core and ancillary added-value services.
“The World Bank’s issuance of the first blockchain bond “bond-i” a few years ago was an innovative first step toward using DLT for bond issuance. This inaugural issuance in partnership with Euroclear, TD Securities and Citibank on Euroclear’s digital platform now presents a transformational opportunity to expand digitization in the capital markets,” said Anshula Kant, Managing Director and Chief Financial Officer, World Bank Group. “This collaboration is a milestone in our efforts to create scalable, transparent, and efficient markets for our member countries.”
“Today’s launch marks a significant stride towards the digital evolution of our financial markets and unlocking the vast potential of digital assets,” said Lieve Mostrey, CEO of Euroclear Group. “Our strategic alliances with the World Bank, TD Securities and Citi played a pivotal role in bringing this innovation to the market, underscoring the transformative impact that true collaboration can have in the financial industry. We will continue to advance pioneering solutions, united by our joint commitment to empowering issuers and investors, elevating market transparency and fostering growth and stability.”
TD Securities was the dealer for the transaction and Citibank was the paying and issuer agent. Investors from North America and Europe participated in the transaction.
“We are delighted to work with the World Bank and Euroclear on this inaugural issuance,” said Andrew Mulley, EMEA Head of Citi’s Issuer Services. “It demonstrates the continued value of the international issuance model and its potential to transform the way in which debt capital markets operate. We are committed to continue our engagement with clients and partners to provide innovative solutions and thought leadership that meets their changing needs.”
“TD Securities is delighted to have acted in partnership with Euroclear, the World Bank and Citi as the issuer agent on this transaction, which marks another crucial milestone on the path to revolutionise and digitize global capital markets. The World Bank continues to demonstrate their commitment to innovation in financial markets and once again takes a leading role with this trade,” said Riaz Ahmed, President and CEO of TD Securities. “We are pleased to work alongside Euroclear, the World Bank and Citi as the issuer agent and we look forward to seeing how increasing utilisation of DLT technologies in capital markets will deliver opportunities that will benefit all market participants.”
“Union Investment as a leading European asset manager is honoured to have participated in this pioneer Digitally Native Note with the highly regarded and innovative issuer World Bank in close cooperation with Euroclear and TD Securities,” said one of the investors, Christoph Hock, Director and Head of Multi-Asset Trading, Union Investment. “This transaction is an important step in the adoption of innovative distributed ledger technology. Token economy and digital assets are key elements of our approach to digitalisation, which has the potential to act as a game changer for the financial industry. Our focus is on assets on chain and on cash on chain with clients, products, and processes.”