First Abu Dhabi Bank is readying to issue the first digital bond in the Middle East via the HSBC Orion digital assets platform. The bond is currently at the pre-issuance pricing stage and will be listed on the Abu Dhabi Securities Exchange (ADX). The stock exchange facilitated the issuance after partnering with HSBC to explore digital bonds in late 2023.
“This initiative not only expands access to institutional-grade digital instruments, but also lays the foundation for a broader class of tokenized assets—including green bonds, sukuk, and real estate-linked products,” said ADX Group CEO Abdulla Salem Alnuaimi.
The three year, $100 million bond is being priced at SOFR+70bps and reflects the growing appeal of digital bonds in institutional markets. Key benefits of digital bonds include operational efficiencies through the use of smart contracts, improved settlement timing and reduced counterparty risk.
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