The French bank announces its first digital green bond in the form of security tokens on Ethereum including transparency and traceability of ESG data.
This Monday, Société Générale has declared that it has issued, through its subsidiary SG-FORGE, its first digital green bond on the public blockchain network Ethereum.
Proposed as security tokensthe bond takes advantage of the benefits offered by blockchain technology, such as smoother, faster transactions and settlements.
The tokens were fully subscribed by AXA Investment Managers and Generali Investments, via a private placement, according to a press release. Both firms have been exploring the potential of tokenization on the capital market for some time.
“This inaugural transaction is structured in the form of a bond senior preferred unsecured 10 million euros with a 3-year maturity. The funds raised will be used exclusively to finance or refinance eligible green activities, as defined in Societe Generale’s Positive Impact and Sustainable Bonds framework”, says the banking group.
According to the announcement, this is also a “first step” in using blockchain as a data repository and certification tool to promote ESG data transparency.
The carbon footprint data linked to this first green crypto bond is available in real time, offering issuers and investors the opportunity to measure the carbon emissions of their securities on the financial infrastructure.
Also, on-chain securities can now be settled with the stablecoin EUR CoinVertible, a euro-backed token launched by Société Generale earlier this year.
Last summer, the French bank’s blockchain unit obtained its first PSAN approval from the AMF.
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