The European Investment Bank (EIB) is issuing €100 million in bonds on the Ethereum blockchain.
EIB is the investment and development arm of the European Union. According to a report by Bloomberg, the EIB’s inaugural Ethereum-based bond sale consists of €100 million ($121 million) in two-year notes. As per the report, the notes have a zero percent coupon and will be uploaded to the Ethereum blockchain after its pricing on Tuesday.
The sale of the Ethereum-based bonds was managed by Goldman Sachs, Societe Generale, and Banco Santander. Recall that in mid-April the EIB employed the services of the three multinational investment banks to explore digital bonds, which would be settled and registered via blockchain.
This is not the first time that an investment bank will be issuing bonds on the Ethereum blockchain. On April 23, Societe Generale announced that it had issued a €100 million ($112m) covered bond as a security token on the public Ethereum blockchain the previous week. The offering received a triple-A rating by Moody’s and Fitch. Before this, both Santander and Societe Generale had issued bonds on the Ethereum blockchain as far back as 2019.