World Bank launches & # 39; the world's first blockchain-powered bonds – Asia Asset Management

World Bank launches & # 39; s the world's first blockchain-powered bonds

August 27, 2018

Category: News, Asia, Australia, Worldwide

From Asia Asset Management

The World Bank raised A $ 110 million (US $ 80.09 million) from the sale of the world's first bonds created and managed using blockchain technology alone.

The proceeds from the sale of the so-called bond i will be used for sustainable development, part of the World Bank's mandate to reduce poverty and promote sustainable development, Commonwealth Bank of Australia (CBA), the arranger, and a investor, from offering, says in a statement.

The biennial bonds pay a coupon of 2.2% per year.

Other investors are First State Super, the largest superannuation fund in Australia; New South Wales Treasury Corp; Chicago based Northern Trust; QBE, the largest insurance group in Australia; South Australian government financing authority; and Treasury Corp of Victoria, CBA says in the August 24 statement.

"CBA and the World Bank will continue to welcome investor interest in the bond throughout their life cycle and other market participants' demands on the platform," says the Sydney-based lender.

James Wall, CBA & # 39; s executive general manager of international institutional banks and markets, describes investor interest in the issue as "overwhelming".

"It is clear that the market is ready for the introduction of emerging technologies and sees the potential evolution of the capital markets," said Mr. Wall in the statement. "It was a pleasure to work on such a ground-breaking transaction with a progressive organization such as the World Bank."

World Bank treasurer Arunma Oteh adds that the organization is "particularly impressed" by the wide range of interested investors, including government agencies, fund managers and banks.

"We were undoubtedly successful in switching from concept to reality because these high-quality investors understood the value of using technology for innovation in capital markets," she says.

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