Societe Generale Issues First Digital Green Bond as Security Token on Ethereum Blockchain
Societe Generale, the third-largest bank in France, has marked a significant milestone by issuing its inaugural digital green bond on the Ethereum public blockchain.
Societe Generale announced Monday that it issued its first green bond on the Ethereum blockchain. The bond, valued at 10 million euros (approximately $11 million), was executed in late November and carries a three-year maturity. This initiative was facilitated through Forge, a subsidiary of Societe Generale.
This pioneering digital green bond is dedicated to financing or refinancing products and companies falling under the eligible green activities category. The “green” status underscores Societe Generale’s commitment to environmentally responsible financing. The net proceeds generated from the bond will be directed towards financing or refinancing products and companies falling within the eligible green activities category.
One of the key innovations accompanying this digital bond is its transparent and accessible digital infrastructure. Through the bond’s smart contract, stakeholders, including issuers and investors, gain 24/7 open access to data pertaining to its carbon footprint.
The bank aims to leverage the Ethereum blockchain as a data repository and certification tool for issuers and investors, particularly in the context of environmental, social, and governance (ESG) considerations. The issuance of tokenized bonds aligns with the bank’s commitment to enabling greater transparency on ESG matters.
This empowers market participants to measure the carbon emissions associated with their securities directly on the financial infrastructure. The smart contract governing the green bond includes comprehensive carbon footprint information accessible to the public.
