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Siemens Releases Blockchain Based Digital Bond in Compliance with German Electronic Securities Act

Siemens is among the first German firms to issue a digital bond in compliance with the Electronic Securities Act. The 60 million-dollar note has a one-year validity and is supported by a public blockchain. The issuance of the bond on a blockchain provides many advantages over traditional procedures. For example, it eliminates the need for paper-based worldwide certifications and central clearance. In addition, the bond may be offered straightaway to investors without the requirement for a bank to act as a middleman.

Siemens successfully supports the digital transformation of its clients with its innovative products and technology. Consequently, it is only reasonable that we evaluate and implement the most recent digital services in finance as well. We are happy to be among the first German firms to effectively release a bond powered by blockchain technology. This has turned Siemens into a forerunner in the continued creation of digital services for the capital and securities markets, according to Ralf P. Thomas, Siemens AG’s Chief Financial Officer.

Germany has been able to issue blockchain-based digital bonds since June 2021, when the Electronic Securities Act went into force. Siemens utilized the latest opportunities provided by the Electronic Shares Act and offered the securities directly to investors, bypassing established central securities depository institutions. At the time of the transaction, the digital euro was not yet accessible, thus payments were made through traditional means. The acquisition might be finalized within two days.

“By abandoning paper in favor of public blockchains for issuing debt, we can conduct trades substantially more quickly and effectively than in the past when issuing bonds. “Thanks to our excellent collaboration with our project associates, we have attained a significant landmark in the growth of digital securities in Germany,” stated Peter Rathgeb, Corporate Treasurer of Siemens AG. We will aggressively promote their continuous growth.

For this transaction, Hauck Aufhauser Lampe Privatbank AG served as the bond registrar. DekaBank, DZ Bank, and Union Investment were the bond’s investors.

 

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