HSBC Executes Singtel’s Billion Dollar Digital Asset Issuance on Marketnode’s Platformby Fintech News Singapore April 21, 2021
HSBC Singapore and Marketnode successfully completed a digital bond issuance on Marketnode’s digital asset issuance, depository and servicing platform. Marketnode is a joint venture between Singapore Exchange (SGX) and Temasek.
The transaction with Singtel is said to represent the largest issuance on the platform to date, with the widest investor base of 123 accounts.
Combined, the total ‘bond notional’ that has been successfully completed on Marketnode’s platform now stands at over S$2 billion which is reportedly the largest volume of digital bonds issued on an exchange-operated network in Asia.
The bank said that the digital bond issuance was in conjunction with a S$1 billion perpetual securities issue by Singtel Group Treasury, guaranteed by Singtel.
HSBC added that the issuance was conducted alongside the traditional bond issuance process as part of SGX’s ongoing pilot to assess the use of digital assets in streamlining processes within the Asian bond market.
This is the first transaction since Marketnode was announced as a joint venture in January 2021, and is the seventh issuance on its platform since August 20201 when SGX completed Asia’s first public syndicated digital bond.
HSBC has continued to play a key role in enhancing process flows on Marketnode’s platform in its roles as arranger bank, custodian and settlement bank.
In addition, HSBC acted as Joint Lead Manager and Bookrunner for Singtel’s S$1 billion perpetual securities issuance.
Gavin Powell, Head of Global Markets, HSBC Singapore said,
“This is a tangible step towards transforming capital markets infrastructure. The transaction demonstrates how digital assets can now be applied on a scalable and sustained level, across different bond structures and to service a wide range of investors.
We are excited to continue on this journey with Temasek and our exchange partner of choice SGX, and with our clients to enable faster, more transparent, and fully secure settlements for bond issuers and investors.”
Arthur Lang, Group CFO of Singtel said,
“Digitalisation is part and parcel of Singtel’s operations and we are pleased to support SGX’s digital asset issuance, depository and servicing platform.
This pilot digital issuance shows the potential to make the issuance process faster and more transparent for our investors and for us as an issuer. We look forward to more such collaborations.”
Featured image credit: HSBC