The European Investment Bank (EIB) issued bonds to raise climate awareness on the so|bond blockchain platform. The assets will be traded on exchanges in Luxembourg.
The EIB announced the release of a tokenized Climate Awareness Bond (CAB) worth 1 billion krona (~$46 million). The assets will be available to institutional investors. They have a fixed rate of 3.638% per annum and a two-year maturity. The infrastructure of the green blockchain platform so|bond was used for the issuance.
According to reports, the bonds will be the first blockchain-based security to be listed on the Luxembourg Stock Exchange and will be displayed on the Luxembourg Green Exchange. The press release notes that the bond issuance was a meaningful step towards more sustainable financial systems, and the technology of the so|bond platform helps address the environmental impact of blockchain infrastructure.
The so|bond platform was launched in April 2023 by Skandinaviska Enskilda Banken and Crédit Agricole Corporate and Investment as a green initiative to work with tokenized bonds. The platform was developed by the French IT provider Finaxys and based on the Proof of Climate awaReness validation protocol, which incentivizes users to reduce energy consumption.
The role of blockchain in fighting climate change is recognized by many leading international organizations. For example, a World Economic Forum working group published a white paper in April 2023 outlining options for using blockchain and ReFi tools to combat climate change. And last October, the Bank for International Settlements, the UN Climate Change Global Innovation Hub, and the Hong Kong Monetary Authority successfully tested two prototypes of tokenized green bonds.
