The bank became the first Dutch Bank to issue a digital green bond that could use the Polygon blockchain’s layer-2 Ethereum scaling technology.
The ABN AMRO Bank in the Netherlands recently became the first bank in the country to issue a digital green bond on a blockchain. The bond offering was successful, as the bank raised 5 million euros for real estate investor Vesteda.
The blockchain-powered characteristic was the bond’s unique factor. Tokeny, a platform using the Polygon blockchain for financial products and securities, issued the bond. The platform saw bond as ERC-3643 tokens, which DekaBank bought.
Investors could access the digital bond through a wallet managed by Tokeny and Fireblocks. ABN AMRO would also be responsible for providing custody services for the transactions concerning the bond.
Vesteda would likely use the proceeds of the bond offering for refinancing its green assets. The firm’s Chief Financial Officer expressed their appreciation for ABN AMRO conducting the bond offering on the public blockchain.
Meanwhile, a senior official of ABN AMRO, Olivier Aartsen, said, “At ABN AMRO, we are very pleased with the placement of the digital bond for Vesteda, as well as the debt that DekaBank provided this way. We have enjoyed working with Vesteda’s team and DekaBank on this transaction.”
Though the bond offering was a first for ABN AMRO on a blockchain, it has past experience in issuing green bonds. However, the recent blockchain-powered bond could start a new span of digital bonds for the bank.