Societe Generale Issued 100mn EUR Bond via Blockchain!
Henry Chan Apr 26, 2019 16:00
A subsidiary of Societe Generale Group - Societe Generale SFH, has partnered with its internal startup Societe Generale FORGE to issue 100 million euro covered bond as security tokens registered on the Ethereum (ETH) blockchain, according to the official announcement on 23 April. Fully subscribed by Societe Generale, the security token is dubbed with the ticker “OFH”, and has been rated Aaa/AAA by Moody’s and Fitch.
A subsidiary of Societe Generale Group - Societe Generale SFH, has partnered with its internal startup Societe Generale FORGE to issue 100 million euro covered bond as security tokens registered on the Ethereum (ETH) blockchain, according to the official announcement on 23 April. Fully subscribed by Societe Generale, the security token is dubbed with the ticker “OFH”, and has been rated Aaa/AAA by Moody’s and Fitch.
The goal for this initiative is looking for a more transparent and faster blockchain solution in bond issuance. Using blockchain for bond issuance has a number of features: product scalability, reduced time to market and computer code automation structuring. These features lead to enhanced transparency, faster transferability and settlement.
External parties also contributed to Societe Generale’s blockchain initiative. Gide Loyrette Nouel was the legal advisor to OFH token issuer. Besides, PwC France and francophone Africa were the blockchain advisor to Societe Generale Group.
Societe Generale has been actively pursuing the use of blockchain technology. For example, Societe Generale had launched a Swiss-based joint venture – komgo SA to manage the process of financing the trading of commodities using blockchain last September.
To sum up, Societe Generale is positive about the disruption of blockchain technology on the financial market, as “It proposes a new standard for issuances and secondary market bond trading and reduces cost and the number of intermediaries”.
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