Siemens is one of the first companies in Germany to issue a digital bond, in accordance with Germany’s Electronic Securities Act (Gesetz über elektronische Wertpapiere, eWpG). Worth 60 million, it has a maturity of one year and is underpinned by a public blockchain. Issuing the bond on a blockchain offers a number of benefits compared to previous processes. For instance, it makes paper-based global certificates and central clearing unnecessary. What’s more, the bond can be sold directly to investors without needing a bank to function as an intermediary.
* This article was originally published here
- First digital bond on a public blockchain in accordance with Germany’s Electronic Securities Act (eWpG)
- Siemens is a pioneer in the ongoing digital transformation of capital and securities markets
- The bond has a volume of €60 million and maturity of one year
- Bond sold directly to investors
- Classic payment via bank account
“With our innovative products and technologies, Siemens supports the digital transformation of its customers with great success. It is therefore only logical that we test and utilize the latest digital solutions in finance, too. We are proud to be one of the first German companies to have successfully issued a blockchain-based bond. This makes Siemens a pioneer in the ongoing development of digital solutions for the capital and securities markets,” said Ralf P. Thomas, Chief Financial Officer of Siemens AG.
It has been possible to issue blockchain-based digital bonds in Germany since the Electronic Securities Act came into effect in June 2021.
Siemens has used the new possibilities of the Electronic Securities Act and sold the securities directly to investors without engaging established central securities depositories. Payments were made using classic methods as the digital euro was not yet available at the time of the transaction. The transaction was able to be completed within two days.
“By moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past. Thanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany,” said Peter Rathgeb, Corporate Treasurer at Siemens AG, “We are going to actively drive their ongoing development.”
Hauck Aufhäuser Lampe Privatbank AG acted as the bond registrar for the transaction. DekaBank, DZ Bank, and Union Investment invested in the bond.
Siemens AG (Berlin and Munich) is a technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a globally leading medical technology provider shaping the future of healthcare. In addition, Siemens holds a minority stake in Siemens Energy, a global leader in the transmission and generation of electrical power. In fiscal 2022, which ended on September 30, 2022, the Siemens Group generated revenue of €72.0 billion and net income of €4.4 billion. As of September 30, 2022, the company had around 311,000 employees worldwide. Further information is available on the Internet at www.siemens.com
- Siemens is a pioneer in the ongoing digital transformation of capital and securities markets
- The bond has a volume of €60 million and maturity of one year
- Bond sold directly to investors
- Classic payment via bank account
“With our innovative products and technologies, Siemens supports the digital transformation of its customers with great success. It is therefore only logical that we test and utilize the latest digital solutions in finance, too. We are proud to be one of the first German companies to have successfully issued a blockchain-based bond. This makes Siemens a pioneer in the ongoing development of digital solutions for the capital and securities markets,” said Ralf P. Thomas, Chief Financial Officer of Siemens AG.
It has been possible to issue blockchain-based digital bonds in Germany since the Electronic Securities Act came into effect in June 2021.
Siemens has used the new possibilities of the Electronic Securities Act and sold the securities directly to investors without engaging established central securities depositories. Payments were made using classic methods as the digital euro was not yet available at the time of the transaction. The transaction was able to be completed within two days.
“By moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past. Thanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany,” said Peter Rathgeb, Corporate Treasurer at Siemens AG, “We are going to actively drive their ongoing development.”
Hauck Aufhäuser Lampe Privatbank AG acted as the bond registrar for the transaction. DekaBank, DZ Bank, and Union Investment invested in the bond.
Siemens AG (Berlin and Munich) is a technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a globally leading medical technology provider shaping the future of healthcare. In addition, Siemens holds a minority stake in Siemens Energy, a global leader in the transmission and generation of electrical power. In fiscal 2022, which ended on September 30, 2022, the Siemens Group generated revenue of €72.0 billion and net income of €4.4 billion. As of September 30, 2022, the company had around 311,000 employees worldwide. Further information is available on the Internet at www.siemens.com
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Disclaimer: The text above is a press release that was not written by Finyear.com.
The issuer is solely responsible for the content of this announcement.
Avertissement : Le texte ci-dessus est un communiqué de presse qui n'a pas été rédigé par Finyear.com.
L'émetteur est seul responsable du contenu de cette annonce.
Disclaimer: The text above is a press release that was not written by Finyear.com.
The issuer is solely responsible for the content of this announcement.
Avertissement : Le texte ci-dessus est un communiqué de presse qui n'a pas été rédigé par Finyear.com.
L'émetteur est seul responsable du contenu de cette annonce.
Fintech, Blockchain News by Finyear
* This article was originally published here
Siemens issues first digital bond on blockchain
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February 16, 2023
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