Linklaters advised the residential real estate company Vonovia SE on the issuance of the company’s first fully digital registered bond in the amount of € 20 million. Security tokens were used for the issuance to transfer ownership of the receivable under the highest security standards. The transfers of the claim right from the registered bond take place on the established Stellar Blockchain, which is used internationally for transactions. The term of the debenture is three years.
The transaction represents a first in the capital market, bringing tokenization to the institutional capital market.
“We are very pleased to have been able to accompany Vonovia in this significant step towards the further digitalization of the financial sector,” said Dr Christian Storck, Partner in the Capital Markets practice and Global Co-Head of Innovation at Linklaters. “This innovative transaction highlights the opportunities available to issuers and institutional investors in the capital markets with distributed ledger technology.” Dr Alexander Schlee, Partner in the Capital Markets practice at Linklaters, added: “In view of the government draft on electronic securities and crypto-securities, we will see more digital capital market transactions in the future.”
The Linklaters team was led by Dr Alexander Schlee (Partner, Capital Markets Partner, Frankfurt) and Dr Christian Storck (Capital Markets Partner and Global Co-Head of Innovation, Frankfurt).
