German state-owned bank KfW has issued a CHF 140 million digital bond via the SIX Digital Exchange, with settlement using a wholesale CBDC. It marks the third issuance on the platform since May, with the City of Lugano and SIX both launching securities.
UBS was lead manager of the 7 year 0.3725% bond. “This bond issue underscores our progress towards modern capital markets and consolidates our role as a driving force of innovation. It also serves as a testament to KfW’s clear focus on digitalization and ongoing development,” said Petra Wehlert, Head of Capital Markets at KfW.
KfW has been fairly prolific with digital bonds, potentially matching the European Investment Bank’s range of digital bond innovations. Germany’s Electronic Securities Act (eWpG) has a concept of centralized issuance using a central securities depository (CSD) versus decentralized crypto securities that use blockchain and registrars instead of CSDs.
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