Key Takeaways
- • Linklaters advised the Joint Lead Managers on the first benchmark issuance of DLT-native sovereign bonds by the Grand Duchy of Luxembourg, according to Legal Desire.
- • The bond carries a nominal amount of €1.7bn, a 3.70% coupon and a 10-year maturity.
- • The bonds were issued through LuxCSD, Luxembourg's central securities depository, using Clearstream's D7 DLT platform, and are admitted to trading on the regulated market of the Luxembourg Stock Exchange.
- • Banque et Caisse d'Epargne de l'Etat acted as lead manager, fiscal agent, principal paying agent, LuxCSD principal agent and listing agent, with Barclays, BGL BNP Paribas, Citi and Crédit Agricole CIB as syndicate banks.
- • Linklaters Capital Markets partner Nicki Kayser led the advising team, which included lawyers from Luxembourg, London and Paris.
Summary
Linklaters has advised the Joint Lead Managers on the first benchmark issuance by the Grand Duchy of Luxembourg of distributed ledger technology (DLT)-native sovereign bonds, according to a Legal Desire report. The transaction, a €1.7bn bond with a 3.70% coupon and a 10-year maturity, was issued through LuxCSD, Luxembourg's central securities depository, using Clearstream's D7 DLT platform. The bonds are admitted to trading on the regulated market of the Luxembourg Stock Exchange.
Banque et Caisse d'Epargne de l'Etat acted as lead manager, fiscal agent, principal paying agent, LuxCSD principal agent and listing agent for the transaction. The syndicate banks, Barclays, BGL BNP Paribas, Citi, Crédit Agricole CIB and Banque et Caisse d'Epargne de l'Etat, contributed to placing the bond with international investors.
Linklaters Capital Markets partner Nicki Kayser described the issuance as "a major milestone in the evolution of Luxembourg and European capital markets." Kayser led the team advising the Joint Lead Managers, which included lawyers from Luxembourg, London and Paris, notably Delphine Horn, Adrian Danciu and Liam Embleton, all of Capital Markets in Luxembourg.
The transaction underscores the growing use of tokenisation and digital infrastructure in sovereign debt issuance, an area in which Linklaters says it has advised on legal and structural frameworks for several significant transactions. The deal is notable for its use of a regulated DLT settlement infrastructure within a sovereign benchmark issuance.
Banque et Caisse d'Epargne de l'Etat acted as lead manager, fiscal agent, principal paying agent, LuxCSD principal agent and listing agent for the transaction. The syndicate banks, Barclays, BGL BNP Paribas, Citi, Crédit Agricole CIB and Banque et Caisse d'Epargne de l'Etat, contributed to placing the bond with international investors.
Linklaters Capital Markets partner Nicki Kayser described the issuance as "a major milestone in the evolution of Luxembourg and European capital markets." Kayser led the team advising the Joint Lead Managers, which included lawyers from Luxembourg, London and Paris, notably Delphine Horn, Adrian Danciu and Liam Embleton, all of Capital Markets in Luxembourg.
The transaction underscores the growing use of tokenisation and digital infrastructure in sovereign debt issuance, an area in which Linklaters says it has advised on legal and structural frameworks for several significant transactions. The deal is notable for its use of a regulated DLT settlement infrastructure within a sovereign benchmark issuance.
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