- Societe Generale’s first digital green bond is a senior unsecured bond on Ethereum.
- The bonds were issued as security tokens and were registered on November 30, with an inception value of €10 million.
- The maturity date is three years and net proceeds will be used for eligible green projects and activities.
Societe Generale, France’s third-largest bank, recently issued the first digital green bond on a public blockchain, according to details in the press release.
The French financial services giant said the issuance of senior preferred unsecured bonds took place on the Ethereum blockchain, with an initial transaction of 10 million euros ($10.79 million).
The bond, issued and registered as a security token on November 30 by Societe Generale subsidiary Forge, has a maturity of three years and grants access to transparency and traceability of carbon emissions through smart contracts.
Societe Generale has issued its first digital green bond with a security token registered directly by Societe Generale-FORGE. #Ethereum Public blockchain.
— Societe Generale Group (@SocieteGenerale) December 4, 2023
Net proceeds to finance green projects
Net proceeds from the bonds will be used to finance or refinance eligible “green” projects or activities, according to the bank.
Investors also have a new option to settle securities on-chain through EUR CoinVertible (EURCV), a euro-pegged stablecoin Forge launched in April. This provides investors with a complementary solution to traditional cash settlements.
According to Societe Generale, as countries continue to experiment with central bank digital currencies (CBDCs), the benefits of EUR CoinVertible’s on-chain solution have become clear.
As major financial institutions and suppliers increasingly adopt blockchain technology, Paris-based Societe Generale has become one of the largest companies leveraging the innovation. The Ethereum blockchain has issued Eurobonds, including in partnership with the European Investment Bank (EIB).
The company has also issued security tokens on Tezos.