Standard Chartered issues $200m DNNs on Euroclear D-FMI

Standard Chartered issued USD 200 million of three-year floating-rate digitally native notes on Euroclear’s Digital Financial Market Infrastructure (D-FMI), acting as sole dealer for the offering. The bank announced the issuance was executed on the day of its statement and has applied for the notes to be admitted to trading on the London Stock Exchange’s International Securities Market.

Euroclear’s D-FMI uses distributed ledger technology to create and manage digital international securities inside a regulated market infrastructure while maintaining connectivity with existing issuance, settlement and servicing processes. The platform aims to link digital securities to established market workflows and trading venues.

Standard Chartered presented the transaction as part of its work to modernise the bank’s funding capabilities and to apply new technologies to its funding programme. The bank said it drew on experience gained from structuring digital debt transactions for clients when arranging the notes.

Vikash Mistry, Deputy Group Treasurer at Standard Chartered, commented that the issuance demonstrates how digital issuance can be integrated into an established funding programme while keeping connections to international market infrastructure and investor workflows.

Ankur Prakash, Head of Digital and Strategic Initiatives, Global Banking at Standard Chartered, noted increasing interest from issuers, investors and market participants in using distributed ledger technology to digitise financial assets and said the bank will continue to support development of tokenised real-world assets and linkages between traditional markets and digital infrastructure.

Sebastien Danloy, Chief Business Officer at Euroclear, said the transaction shows how digitally native issuance can be integrated into Euroclear’s infrastructure, allowing issuers and investors to use digital processes while retaining access to existing liquidity channels, trading venues and regulatory frameworks.

Standard Chartered has previously taken lead roles in other digital debt transactions, including as Joint Digital Structurer and Joint Lead Manager for Emirates NBD’s AED 1 billion digitally native bond on Euroclear’s D-FMI and as Sole Lead Manager for Doha Bank’s USD 150 million digitally native bond with instant settlement. The bank said those engagements informed its approach to issuing the notes for its own funding programme.