The sole manager of the deal, Commonwealth Bank of Australia said in a statement that the two-year bonds had priced to yield 2.251 percent and would settle August 28. The prototype deal, dubbed a “Bondi” bond is being viewed as an initial step in moving bond sales away from manual processes towards faster and cheaper automation.
The World Bank regularly uses its borrowing power to help develop new bond markets as well as pioneering new means for selling and trading the securities. It issues between USD 50 billion and USD 60 billion a year of bonds to back economic progress in developing countries.
The bank’s blockchain push comes as the Australian Securities Exchange plans to switch to using distributed ledger (blockchain) technology to clear and settle equities trades from 2020 to help cut costs, according to Reuters.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now