The European Investment Bank (EIB) has issued its sixth digital bond, a €100 million fixed-rate note maturing on 22 November 2029. This issuance, which is part of the Eurosystem’s exploration of new technologies for wholesale central bank money settlement, now includes integration with HSBC’s digital assets platform, HSBC Orion.
The bond was settled using the Banque de France’s distributed ledger technology (DLT) platform, DL3S, utilising wholesale central bank digital currency. HSBC and the Banque de France confirmed that the bond demonstrates seamless interoperability between the DL3S platform and HSBC Orion.
Global investors can now access the EIB bond via custody accounts held with BNP Paribas, HSBC, or JP Morgan, expanding market access and providing a wider range of clients with exposure to innovative financial solutions.
Progress in digital finance
Cyril Rousseau, director general of finance at the EIB, highlighted the bond’s significance in advancing the modernisation of capital markets. “EIB’s new blockchain-based bond marks a significant step forward in our journey to modernise capital markets and leverage innovative technology in finance. As the European Investment Bank, we are proud to lead this effort,” he said.
This bond builds on the EIB’s previous issuance, which also utilised Banque de France’s DL3S platform in real-time integration with Goldman Sachs’ GS DAP. The continued collaboration with diverse platforms such as HSBC Orion further expands the testing of market issuance mechanisms and custodial solutions, reinforcing the EIB’s leadership in financial technology innovation.
Industry support
John O’Neill, group head of digital assets and currencies at HSBC, emphasised the importance of this development in Europe’s financial ecosystem. “It represents another step in realising the full potential of DLT and digital assets in the European financial ecosystem, enabling bond issuers and investors to benefit from increased speed and reduced risks while closely aligning with the highest regulatory standards,” he said.
Additional participants in the transaction include Goldman Sachs Bank Europe SE, DZ Bank, and LBBW as joint lead managers, with legal counsel provided by Clifford Chance. Custodians and paying agents, such as BNP Paribas and J.P. Morgan, enhance the operational framework for investors engaging with the bond.
