Societe Generale SFH, a subsidiary of Societe Generale Group, has recently issued EUR 100 million of covered bonds as security token, directly registered on the Ethereum blockchain. Societe Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth, aiming to be the trusted partner for its clients, committed to the positive transformations of society and the economy.
Key Point: OFH Tokens have been rated AAA by Moody’s and Fitch and have been fully subscribed by Societe Generale.
How the Project Was Completed
The operation was made possible thanks to the teams of the Finance, Legal, Compliance and Operations departments of the Bank.Notably, Gide Loyrette Nouel was appointed as legal advisor to the OFH Token issuer and PwC France and francophone Africa was involved as blockchain advisor.
This operation is the first pilot project developed by Societe Generale and Societe Generale FORGE. It is one of the 60 internal startups launched via the Internal Startup Call, the Group’s intrapreneurial programme. This startup experiments disruptive business solutions using blockchain technology to develop new digital capital market activities.
This live transaction explores a more efficient process for bond issuance. Many areas of added value are predicted, among which, product scalability and reduced time to market, computer code automation structuring, which offers better transparency, faster transferability and settlement. It also proposes a new standard for issuance and secondary market bond trading which reduces cost and the number of intermediaries.
Earlier in April, Societe Generale announced that all corporate clients based in France have now access to we.trade, the most advanced platform for digitalising, securing and finnacing corporate trades.
It was also previously involved in the launch of komgo SA to digitalise the trade and commodities finance sector through a blockchain based open platform.