Societe Generale Pioneers Digital Green Bond on Ethereum Blockchain

Societe Generale has successfully issued its inaugural digital green bond as a Security Token, directly registered by SG-FORGE on the Ethereum public blockchain. The digital green bond, valued at EUR 10 million, marks a significant move towards leveraging blockchain’s unique features, offering increased transparency, traceability, and streamlined transaction processes.

The security tokens associated with the green bond were fully subscribed by two leading institutional investors, AXA Investment Managers and Generali Investments, through a private placement. The transaction, structured as a EUR 10 million senior preferred unsecured bond with a 3-year maturity, will exclusively fund or refinance Eligible Green Activities, as outlined in Societe Generale’s Sustainable and Positive Impact Bond framework.

This groundbreaking operation demonstrates Societe Generale’s commitment to integrating blockchain for enhanced transparency in ESG (Environmental, Social, and Governance) data. The digital format not only facilitates transparency and traceability but also ensures greater fluidity and speed in transactions and settlements.

Key Innovations:

1. Carbon Footprint Transparency: Information on the carbon footprint associated with the digital bond infrastructure is accessible 24/7 in open access directly within the bond’s smart contract. This innovative feature allows issuers and investors to measure the carbon emissions of their securities on the financial infrastructure, promoting transparency in ESG considerations.
2. On-Chain Settlement Options: Investors now have the option to settle securities on-chain through the EUR CoinVertible, a digital asset issued by SG-FORGE in April 2023. This complements traditional cash settlement solutions and showcases the versatile capabilities of SG-FORGE in providing a full spectrum of on-chain services.

This issuance represents Societe Generale’s latest foray into digital instruments, showcasing the innovative services developed by the financial institution. It also reinforces the Group’s debt capital markets capabilities, meeting the rising demand from corporate and institutional clients for digital assets, with a particular emphasis on ESG considerations.

The move highlights Societe Generale’s dedication to leveraging its financial structuring expertise and SG-FORGE’s technological capabilities to contribute to the development of an innovative and sustainable bond market.

Photo by J Venerosy on Unsplash

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