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EIB issues its first blockchain-based digital green bond

european invesmtent bank eib eif

The European Investment Bank (EIB) has issued a SEK 1 billion ($93m) green bond using the so|bond blockchain platform developed by Sweden’s SEB and Credit Agricole CIB. This is the EIB’s fourth digital bond, with each one issued on a separate platform.

The two-year bond is listed on the Luxembourg Stock Exchange Securities Official List and the Luxembourg Green Exchange.

So|bond was unveiled earlier this year with its novel Proof of Climate awaReness protocol, which incentivizes node operators to minimize the carbon footprint of their node with a token, the Climate awaReness Coin.

It’s a public permissioned blockchain with the nodes currently operated by Credit Agricole CIB, SEB and CACEIS. The account keeper for the issuance is Credit Agricole CIB.

“By combining the power of blockchain with our unwavering commitment to environmental stewardship, we further strengthen our path towards a greener and more sustainable future,” said EIB Vice-President Ricardo Mourinho Felix.

We were curious about who invested in the bond but didn’t receive a response in time for publication.

LuxSE Director Arnaud Delestienne observed that the bond is “the first native digital green bond to be displayed on our Luxembourg Green Exchange platform, adding another successful milestone to our longstanding relationship with EIB.”

It’s been more than two years since the EIB issued its first €100m digital bond on the public Ethereum blockchain using Societe Generale’s platform. Eighteen months later it unveiled another €100 million bond, this time on the Goldman Sachs GS DAP permissioned blockchain. In January this year, it used HSBC’s Orion bond tokenization solution for a £50 million bond. The EIB has been the first user of all four platforms.

It has been quite a learning experience for Xavier Leroy, the funding officer in charge of the blockchain issuances for the EIB. Earlier this year he shared some of his views on what needs to happen for the sector to achieve traction. The top of his list is for more conventional custodians to support digital assets.

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