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Citibank Korea headquarters in central Seoul / Courtesy of Citibank Korea
Citi has supported Hana Bank’s first $100 million digital bond issuance on Euroclear’s Digital Financial Market Infrastructure (D-FMI) platform, serving as issuing and paying agent, the global lender said Wednesday.
The transaction marked the first time a Korean bank issued a foreign-currency bond on the platform and settled it on the same day, known as T+0 settlement, according to Citi. The bond also became the first digital bond listed on the Singapore Exchange.
Citi coordinated issuance, settlement and delivery of the digitally native notes (DNN) to the dealer for distribution to investors through Euroclear’s settlement bank.
The deal adds to Citi’s digital debt business. The lender said it has acted as issuing and paying agent for most transactions completed to date on Euroclear’s D-FMI platform.
“Citi’s role in Hana Bank’s landmark issuance reflects the commercial scale we are building in digital debt markets, having supported similar transactions across diverse issuers and markets globally,” said Dirk Jones, head of Issuer Services at Citi Services. “This is a first for the Korean financial sector and is also a milestone for digital capital markets across Asia.”
He noted that the growing use of distributed ledger technology is changing how debt is issued and settled, increasing the need for services that work across traditional and digital market infrastructure.
“Citi is committed to supporting our clients through that transition, operating across both traditional and digital financial market infrastructures as the two continue to converge,” he added.
Elodie Norman, Euroclear’s chief commercial officer for Asia Pacific, said Hana Bank’s issuance could encourage other banks in the region to explore digital capital markets.
She said the transaction brings together the operational benefits of digital issuance and the investor access provided by established market infrastructure.
“As adoption accelerates, the ability to bridge digital and traditional markets will be critical to scaling digital securities and unlocking their full potential for issuers and investors alike,” she said.
