Today, a German multinational firm, Siemens launched its first digital bond. The firm announced the development in its latest Twitter post. According to the announcement, the digital bond is worth $60 million and underpinned by a public blockchain.
Occasioned by this development, Siemens has now become the first firm in Germany to issue a digital bond. Meanwhile, the industry giant, in its announcement, explained that the bond has a one year maturity. It plans to directly sell the bond to investors without involving any established central securities depositories.
According to Siemens, the issuance of the bond on a blockchain offers more benefits than the initial processes. One of such benefits is that it eradicates paper-based global certificates and central clearing. This thus ensures that the bond can be sold without a bank functioning as an intermediary. Further, it allows for easy and classic payment. Meanwhile, as of press time, renowned institutions, like DekaBank, DZ bank, and Union Investment have invested in the bond.
Siemens cementing its place as the pioneer of ongoing digital transformation
Notably, the firm maintained that it designed the digital bond in line with the electronic securities act in the country. Recall that the act came on board in June 2021, thereby allowing corporate institutions to issue blockchain-based digital bonds in Germany. Through the launch of this bond, Siemens has cemented its place as a pioneer in the ongoing digital transformation of capital and securities markets.
Meanwhile, the Chief Financial Officer of Siemens, Ralf Thomas has reacted to the development. According to Thomas, Siemens aims to support the digital transformation of its customers through its innovative products and technologies. He added that this ambition made the firm to test and utilize the latest digital solutions in finance. Also, the exec boasted that the German giant is proud to emerge as one of the first companies in the country to issue a blockchain-based bond. This, according to him, makes the firm a navigator in the ongoing development of virtual solutions for the capital and securities sphere.
More so, the corporate treasurer of Siemens, Peter Rathgeb also reacted to the development. Rathgeb noted that the migration from paper to public blockchains in the issuance of securities enables transactions to become more faster and efficient. The treasurer thanked all the project partners for their corporation in ensuring the success of the digital bond. According to him, Siemens has attained a significant milestone in the development of digital securities in Germany. He, however, reiterates the commitment of the firm to continuously sustain the ongoing development.
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