The World Bank issued bond-i (blockchain operated new debt instrument) - the world's first bond created and managed using distributed ledger technology. The two-year bond raised A$110 million. For the first time, investors were able to support the developments of the World Bank with blockchain transactions.
On August 10, the World Bank appointed the Australian branch of the Commonwealth Bank as the issuer of the bonds. This appointment was followed by a two-week market consultation period during which many key investors supported the project.
Investors include CBA, First State Super, NSW Treasury Corporation, Northern Trust, QBE, SAFA, and Treasury Corporation of Victoria. Bank officials say they will continue to engage investors and consider market requests and proposals for the new platform.
The bond issuance is part of the World Bank's broader strategic plan. In July 2017, the World Bank launched the Blockchain Innovation Lab, which aims to explore the technology's potential in industries such as land administration, supply chain management, healthcare, education and cross-border payments.
Arunna Oteh, Treasurer of the World Bank, said:
“I am very pleased that the bond-i idea has been so well received by investors. We have been particularly impressed by how authorities, fund managers and banks were interested in this project. We undoubtedly successfully moved from concept to reality, as high-end investors realized the value of using blockchain technology for innovation in the capital markets.
The success of this project also contributed to our hard work over several years, as well as our partnership with the Australian branch of the Commonwealth Bank. I also want to thank our partners, namely: King & Wood Mallesons, IHS Markit, Microsoft and Toronto. Dominion Securities. We will continue to look for ways to use new technologies to make the capital markets safer and more efficient.
Service providers for the bond platform include TD Securities as market maker, IHS Markit as independent appraiser, Microsoft as coding expert, and King & Wood Mallesons as transaction advisor.
The World Bank issues $50-$60 billion in capital issues each year. bonds for sustainable development. The bank has 70 years of experience in capital markets innovation, and in January 2000 it issued the world's first fully integrated electronic bond.. A frequent issuer in the Australian dollar market, the bank has received approximately A$60 billion in investment since 1986.
According to worldbank.org
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