NRW.BANK issues first digital bond
Düsseldorf — NRW.BANK is one of the first German financial institutions to issue a digital bearer bond under the Electronic Securities Act. This makes it one of the pioneers in the digitization of this still very analog area in the securities market. Automated emission process increases speed
“The handling of our first digital bond issue is another consistent step for us to actively shape the technological transformation in the financial sector,” says Gabriela Pantring (photo © NRW.Bank), member of NRW.BANK’s Managing Board. “A fully digital issue significantly streamlines the process while ensuring transparency. It demonstrates our commitment to digitization in the securities sector.”
The issue of the digital bond with a volume of €20 million, two-year maturity and a coupon of 2.875% was handled via Deutsche Börse Group’s D7 platform. The issuance of the bond was supported by LBBW.
The D7 platform replaces the traditional vault with a digital securities register. This is an important first step that will enable further digital transformation of subsequent settlement processes. — NRW.BANK’s digital bearer bond is listed on the Düsseldorf Stock Exchange under WKN NWB1W2.
In summer 2021, the Electronic Securities Act (eWpG) created the legal basis for issuing digital securities. Issuers are no longer required to deposit certificates of securities in paper form with Deutsche Börse subsidiary Clearstream. Verification and storage is also now no longer done in analog, but in a digital emissions register.
In 2019, NRW.BANK had already become the first development bank to process a promissory note loan transaction on a same-day and paperless basis via blockchain. This was followed in September 2020 by the first blockchain-based and thus fully digital and legally secure own issue of a promissory note loan.
NRW.BANK is the development bank for North Rhine-Westphalia. It supports its owner, the state of NRW, in its structural and economic policy tasks. In its three promotion fields “Economy”, “Housing” and “Infrastructure/Municipalities”, NRW.BANK uses a broad range of promotion instruments: from low-interest development loans to equity financing and advisory services. It works together with all banks and savings banks in NRW on a competition-neutral basis. In its promotion activities, NRW.BANK also takes into account existing offers from the federal government, the state and the European Union. www.nrwbank.de