In April, SEB, and Credit Agricole CIB (Commercial and Investment Bank) announced the development of so|bond – a blockchain-based platform for issuing digital bonds.
The European Investment Bank has now, as the first actor, issued a bond on the platform. The premier bond is a digital Climate Awareness Bond of 1 billion Swedish kronor. The EIB will in turn use the proceeds for lending to climate-related projects.
“SEB is delighted to assist EIB in the delivery of its first digital Green Bond through a solution that combines innovation and climate smart solutions. It is a great technological development which paves the way for efficiency gains and in parallel increases transparency regarding the environmental footprint”, says Anna Sjulander, head of the SSA segment (sovereigns, supranationals and agencies) within Debt Capital Markets.
The digital bond platform uses a new type of validation logic, which enables low energy consumption and encourages the affiliated banks to continuously improve the carbon footprint of their infrastructure. This is done through a reward system where the actors are rewarded for their efforts, the lower the environmental impact, the greater the reward.