Enhanced Investments - Financial Portal

Citi Acts as First Issuing and Paying Agent for World Bank on Euroclear’s New D-FMI DLT Platform

Published: 2023-10-24 13:00:00 ET

Digitally Native Notes delivering issuance, distribution and primary market settlement of fully dematerialised international securities

LONDON--(BUSINESS WIRE)-- Citi’s Issuer Services, a part of Securities Services, today acted as the Issuing and Paying Agent for the first Digitally Native Note (DNN) issuance under English Law via Euroclear’s Digital Financial Market Infrastructure (D-FMI) distributed ledger technology (DLT) platform. The EUR 100 million 3-year DNN was issued by the World Bank - International Bank for Reconstruction and Development (IBRD) - (rated Aaa/AAA) and listed on the Luxembourg Stock Exchange.

The creation and settlement of DNNs on a T0 basis is an important first step in the evolution of bonds and lays the foundations for a fully digital end to end transaction lifecycle.

This partnership between existing key industry stakeholders provides a scalable model that delivers the benefits of digitization whilst preserving existing bond accessibility and liquidity, illustrating how blockchain technology can be integrated with existing capital markets architecture. Today is the culmination of a multi-year program with stakeholders including Citi, Euroclear and IBRD to deliver a sustainable digital infrastructure for the issuance of DNNs. It is envisaged that the D-FMI will improve efficiency and growth opportunities for debt capital market participants as the infrastructure continues to develop.

“We are delighted to work with our partners at Euroclear and IBRD on this inaugural digital issuance. It demonstrates the continued value of the international issuance model and its potential to transform the way in which the debt capital markets operate. As one of the world’s leading providers of services to debt issuers we continue to work with our partners to provide innovative solutions that deliver benefits including improved transparency, efficiency, liquidity, and client experience” said Andrew Mulley, EMEA Head of Citi's Issuer Services.

“This initiative perfectly aligns to our mission of connecting our clients into new digital networks that enable them to create, or invest in, digital assets to unlock new efficiency, value and operating models” said Ryan Marsh, Global Head of Blockchain, Digital Assets & Innovation for Citi Securities Services. “This is the latest in a series of digital bond initiatives that we expect to participate in.”

Lieve Mostrey, Euroclear Group CEO said: "Our collaborations with Citi, TD Securities and the IBRD have been instrumental in the launch of this major innovation in asset issuance. The integration of our distributed ledger technology capabilities marks a significant milestone in the digital transformation of our global financial markets. Today's announcement represents a momentous stride towards realising the boundless potential of digital assets, underpinned by our shared commitment to pioneering innovation and delivering transformative solutions for investors and issuers on a global scale."

“Since the World Bank’s first blockchain bond “bond-i”, debt capital markets have been moving towards digitization, step-by-step. We are pleased to announce that today we contributed to this ongoing development through issuing the inaugural digital native note on Euroclear’s D-FMI platform, working together with Citibank and others,” said Jorge Familiar, Vice President and Treasurer, World Bank.

Citi continues to develop digital asset solutions, in line with its goals and risk appetite, using a unified set of shared technology capabilities and a common strategic approach. These innovative solutions enhance Citi’s products and services including digital money, trade, securities, custody, asset servicing and collateral mobility.

About Citi Securities Services

With approximately US $28 trillion1 of assets under custody, administration and trust and an industry-leading proprietary network spanning over 60 markets, Citi Services provides cross-border support for clients with extensive on-the-ground local market expertise, innovative post-trade technologies, customized data solutions and a wide range of securities services solutions that can be tailored to meet clients’ needs.

About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | Twitter: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi

1As of 30 June 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231024499959/en/

Media Richard Bicknellrichard.bicknell@citi.com

Source: CITI

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.