SGX, HSBC, Temasek completes pilot digital bond for Olam International

SGX successfully replicated a $400m 5.5-year public bond issue by Olam.

Singapore Exchange (SGX), in collaboration with HSBC Singapore and state-run investment company Temasek, has completed its first digital bond issuance on SGX’s digital asset issuance, depository and servicing platform, the bourse revealed in a press release.

SGX successfully replicated a $400m 5.5-year public bond issue and a follow-on $100m tap of the same issue by Olam International.

This marks the first syndicated public corporate bond in Asia, according to SGX.

SGX made use of DAML, the smart contract language created by Digital Asset, to model the bond and its distributed workflows for issuance and asset servicing over the bond’s lifecycle. The bourse’s solution reportedly uses smart contracts to capture the rights and obligations of parties involved in issuance and asset servicing, such as arrangers, depository agents, legal counsel and custodians.

The digital bond also made use of HSBC’s on-chain payments solution, which allows for settlement in multiple currencies to facilitate transfer of proceeds between the issuer, arranger and investor custodian.