Last week it was reported that China Construction Bank (CCB) was involved in a blockchain bond with Malaysia’s Fusang Exchange. While the Fusang announcement claimed it could be up to $3 billion, we reported that the initial issuance was far less, around $14 million.
The bond is to be backed by funds held on trust at the Labuan branch of CCB. Subsequently the bank was keen to downplay its involvement. And then on Friday, the issue was postponed.
As we reported, the bank is not responsible for the bond liabilities, which will be issued by a special purpose vehicle called LongBond. We noted that the bank “acts as lead arranger and listing sponsor but does not stand behind the prospectus.”
In response to media reports elsewhere, the bank issued a statement saying that:
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
