The Inter-American Development Bank (IDB) priced its first digital bond in pound sterling, leveraging HSBC Orion, a digital assets blockchain-based platform. The issuance was governed by Luxembourg law, which allows bonds and other securities to be issued, transferred, and securely held in digital form. The 15-month, £5 million, fixed-rate bond was jointly managed by HSBC and NatWest.
HSBC Orion platform is a secure, private blockchain that provides the official record of bond ownership and a framework to manage the instrument and its lifecycle events. The transaction also integrated the clearing process into the the platform, streamlining the issuance.
“Blockchain-based settlements represent a major step forward in modernizing debt-capital markets, offering benefits such as operational efficiency, reduced costs, and enhanced transparency for market participants,” said Gabriel Yorio, the IDB's vice president for finance and administration. “This bond issuance aligns with the IDB’s commitment to embracing cutting-edge technologies in financial solutions, driving greater efficiency in our operations and supporting innovation in capital markets,” he added.
“We are proud to have worked with the IDB to issue their first digital bond on HSBC Orion. HSBC is committed to developing digital asset solutions that serve our customers,” said John O’Neill, HSBC Group Head of Digital Assets and Currencies.
“We are delighted to have supported the IDB on this digital-bond issuance, underscoring our role as a trusted partner to guide customers through the evolution of digital capital markets,” said Karen Manku, NatWest director, SSA Debt Capital Markets.
This pioneering transaction reinforces the IDB’s commitment to innovation as it continues to explore new financial instruments and services that drive efficiency and enable it to better support social and economic development across Latin America and the Caribbean.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region.
About HSBC Orion
HSBC Orion was launched in February 2023, as HSBC’s digital assets platform that financial institutions and corporates can use to issue digitally native bonds based on distributed ledger technology.
About HSBC
HSBC Bank provides transaction banking, financing, advisory, capital markets, and risk management services. HSBC has an unparalleled global fixed income platform, with well-established bond sales and origination teams in numerous jurisdictions – providing best-in-class bond advisory and distribution capabilities.
About NatWest
NatWest provides financing, risk management and trading solutions to its customers' specific, individual circumstances. It operates from trading hubs in the UK, EU, United States, and Asia.
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