One of China’s foremost banking institutions, the Bank of China, has just issued special financial bonds worth 20 billion yuan ($2.8 billion). The issuance was powered by blockchain technology and is targeted at small and micro enterprises that have their own blockchain systems.
According to an official statement published recently, the issuance was done using its own blockchain platform to enable efficiency and transparency and ensure ownership. In addition, the institution also announced that the issuance is for a bond that will span two years at a 3.25% coupon rate. The statement said:
“We have used our own blockchain-based bond issuance system in the process. This is also the first bond issuance ledger system that is based on blockchain in the country.”
The bank has also said that is is focused on fulfilling its corporate social responsibilities especially with assisting financial businesses. As at the end of September 2019, Bank of China has given out loans to about 410,000 small and micro businesses, to the tune of 404 billion yuan ($57.3 billion). The statement notes that this amount is an increase of exactly 35.36%, over the whole of 2018.
China has been pro-blockchain recently and this is the first time in China that bonds have been issued using blockchain technology. The issuance involved a group of underwriters, participating fully in on-chain interaction and transparent documentation.
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