HomeCryptoNewsThe World Bank Raised Another $33.8 Million USD by Issuing Bonds on...

The World Bank Raised Another $33.8 Million USD by Issuing Bonds on its Private Ethereum Blockchain

According to Commonwealth Bank of Australia, the World Bank raised another $50 million AUD or $33.8 million USD by issuing bonds, which run on a private version of the ethereum blockchain. The Common Wealth Bank of Australia manages the sales of these bonds or blockchain-operated debt instrument also called bond-i. A total of $160 million AUD or 108 million USD has been raised on these bonds by the World Bank.

According to the Common Wealth Bank of Australia also called CommBank, both old and new investors participated. This blockchain platform was also developed by CommBank’s Blockchain Centre of Excellence. In August 2018, CommBank (CBA) was mandated by the World Bank as an arranger for the bond.

In a press release by the World Bank on August 16, 2019, Sophie Gilder, Head of Blockchain & AI, Commonwealth Bank of Australia, said:

“CBA now has tangible evidence from our first bond offering using blockchain technology and subsequent bond management, secondary trading and tap issue via the same platform, that blockchain technology can deliver a new level of efficiency, transparency, and risk management capability versus the existing market infrastructure.  Next, we intend to deliver additional functionality to deliver greater efficiencies in settlement, custody and regulatory compliance.”

the world bank

The World Bank, besides CommBank, has RBC Capital Markets (RBC) and TD Securities (TD) also as lead manager for this Bond-i platform. It is a process of the first bond created, allocated, transferred and managed through its life-cycle using distributed ledger technology. James Wall, executive general manager international at Commonwealth Bank, added:

“The tap is an important milestone in demonstrating the full lifecycle management of an issuer’s capital markets needs. It is also a significant step for the platform bringing on additional participants and demonstrating the broader potential of Bond-i as a capital markets platform.”

 The World Bank’s blockchain innovation lab was established in 2017 as an innovation hub for poverty reduction projects across the world. In this press release,  Andrea Dore, World Bank Head of Funding, expressed his feeling as:

“We are happy to see the continued, strong support and collaboration from investors and partners. The World Bank’s innovation and experience in the capital markets is key to working with our member countries to increase digitization to boost productivity in their economies and accelerate progress towards the Sustainable Development Goals.”

The World Bank also calls it Kangaroo bond and is due August 2020. To get more details about this Bond-i, the World Bank, and CommBank (CBA), readers can read this press release published by the World Bank.

Alfonso Martínez
Alfonso Martínez
Cryptocurrency enthusiast since 2015, a lover of blockchain technology and everything around her. He joined the Crypto Economy team in 2018 as a content editor specializing in SEO. He is also responsible for the Social Networks of the platform.
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