NRW.BANK issues first digital bond / Increased speed thanks to automated issuing process

NRW.BANK is one of the first German financial institutions to have issued a digital bearer bond under the Electronic Securities Act. This makes the bank one of the pioneers in the digitalisation of this still very analogue segment of the securities market.

“Handling our first digital bond issue is a logical step for us to actively help shape the technological transformation of the financial sector,” says Gabriela Pantring, member of NRW.BANK’s Managing Board. “A fully digital issue clearly streamlines the process, while at the same time ensuring transparency. It underpins our commitment to digitalising the securities sector.”

The issue of the digital bond, which has a volume of 20 million euros, a term of two years and a coupon of 2.875%, was handled via the D7 platform of Deutsche Börse Group. The bond issue was lead managed by LBBW.

The D7 platform replaces the traditional vault with a digital securities register. This is an important initial step which will enable the further digital transformation of the subsequent settlement processes.

NRW.BANK’s digital bearer bond is listed on the Düsseldorf Stock Exchange under WKN NWB1W2.

The basis for the issue of digital securities was laid by the Electronic Securities Act (eWpG), which came into force in summer 2021. Issuers no longer need to deposit securities certificates with Clearstream, a Deutsche Börse subsidiary, in paper form. Verification and storage also no longer take place in analogue form but in a digital register of issues.

As early as 2019, NRW.BANK was the first promotional bank to manage a note loan transaction on a same-day and paperless basis via blockchain technology. The first blockchain-based and hence fully digital and legally certain issue of the Bank’s own note loan followed in September 2020.

Media contact:
Caroline Fischer
+49 211 91741-1847, caroline.fischer@nrwbank.de

About NRW.BANK
NRW.BANK is the promotional bank of North Rhine-Westphalia (NRW). Its mission is to support its owner – the state of North Rhine-Westphalia – in the completion of its structural and economic policy tasks. In its three promotional fields “Economy”, “Housing” and “Infrastructure/Municipalities”, NRW.BANK uses a wide range of promotion tools – from low-interest promotion loans to equity financing to advisory services. It cooperates with all banks and savings banks based in NRW on a competition-neutral basis. NRW.BANK takes into account the existing offers by the Federal Government, the North Rhine- Westphalian government and the European Union in the arrangement of its promotion.

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