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HSBC, Marketnode execute Singtel digital bond issuance
Transaction shows how digital assets can be applied on scalable level across different structures
20 Apr 2021 | The Asset

HSBC Singapore and Marketnode, the joint venture between Singapore Exchange (SGX) and Temasek, have successfully completed a digital bond issuance on Marketnode’s digital asset issuance, depository and servicing platform, in conjunction with a S$1 billion (US$751 million) perpetual securities issue by Singtel Group Treasury, guaranteed by Singtel.

The digital bond issuance was conducted alongside the traditional bond issuance process as part of SGX’s ongoing pilot to assess the use of digital assets in streamlining processes within the Asian bond market.

This is the first transaction since Marketnode was announced as a joint venture in January 2021, and is the seventh issuance on its platform since August 2020 when SGX completed Asia’s first public syndicated digital bond. The transaction with Singtel represents the largest issuance on the platform to date, with the widest investor base of 123 accounts.

Combined, the total ‘bond notional’ that has been successfully completed on Marketnode’s platform now stands at over S$2 billion - the largest volume of digital bonds issued on an exchange-operated network in Asia.

HSBC played a key role in enhancing process flows on Marketnode’s platform in its roles as arranger, custodian and settlement bank. In addition, HSBC acted as joint lead manager and bookrunner for Singtel’s S$1 billion perpetual securities issuance.

“This is a tangible step towards transforming capital markets infrastructure,” says Gavin Powell, head of global markets, HSBC Singapore. “The transaction demonstrates how digital assets can now be applied on a scalable and sustained level, across different bond structures and to service a wide range of investors.”