In a landmark transaction, the Federal State of Saxony-Anhalt has this week issued a €50 million digital commercial paper in the form of dematerialised electronic securities in accordance with the German Electronic Securities Act. NatWest Markets Europe acted as Sole Lead Manager on the transaction, selling the Notes to DekaBank.
This marks the first time a Bundesland has issued a digital security and the first time a commercial paper from a German public authority has been issued and settled via the Deutsche Bundesbank Trigger Solution. The Trigger Solution connects Distributed Ledger Technology (DLT) platforms with existing Eurozone payment systems, making transactions faster and more secure.
The issuance was part of a European Central Bank trial to settle wholesale financial transactions recorded on DLT platforms in central bank money. The Notes were issued by means of a registration in Deutsche Börse’s D7 platform, together with Clearstream Banking Frankfurt acting as the registrar and transaction manager.
Vincent Goedegebuure, Chief Executive of NatWest Markets N.V., said: “We are delighted to have supported the Federal State of Saxony-Anhalt on this milestone for public sector issuers in Germany. This transaction underscores NatWest’s role as a trusted partner in supporting our customers. Central bank money provides the highest security in settlement of digital assets and we welcome the progressive approach the ECB and the participating national central banks have taken with the trials.’’