Fusang, a Hong Kong-based Fintech, has partnered with the China Construction Bank to issue $3 billion worth of bonds utilizing blockchain technology.
According to Fusang:
“The Issuer is a special purpose vehicle and its principal activity is to establish the commercial paper programme of up to USD 3 billion in nominal value arranged by China Construction Bank Corporation Labuan Branch (“CCBL”). Funds raised from this issuance will be placed with CCBL as fixed deposit with maturity date in February 2021. The Notes are listed on Fusang Exchange in the form of digital tokens, which are deployed on the Ethereum blockchain using the ERC-20 protocol (the “Digital Tokens”). The Digital Tokens shall constitute direct, unconditional, unsubordinated and secured obligations of the Issuer and shall rank pari passu without any preference amongst themselves and shall at all times rank pari passu, without discrimination, preference or priority amongst themselves and at least pari passu with all other present and future unsecured and unsubordinated obligations of the Issuer, except those preferred by law. The Digital Tokens are traded on Fusang Exchange with prices quoted in USD and BTC.”
Fusang touts the offering as the first publicly available blockchain-based digital bond backed by the world’s second-largest bank.
The bonds (ticker token LBFEB21), with a face value of US$ 100, were issued at a discount of US $99.797. The yield was stated at 77.5 basis points with maturity in February 2021.
Investors could purchase using fiat or Bitcoin.
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