Vasakronan, a Stockholm, Sweden-based real estate firm, as per recent reports, with assistance from Citi, a New York, NY-based multinational financial services company, has successfully issued AU$30 million ($21.07 million) Green Bond, using the origination platform by Origin, a London-based capital markets company, thus, becoming the first fully digitally issued medium-term note (MTN).
The Origin platform is a mediator that brings together issuers and dealers, establishing a trading connection between them in the debt primary markets. Vasakronan, with Citi’s help, was successfully able to fully automate the documentation and communication flow processes.
“We are pleased to collaborate with Origin to handle this milestone trade on behalf of Vasakronan,” states Amaury Gossé, Global Head of MTNs at Citi. “As issuers continuously look for increased efficiency, speed and transparency, the ability to support a fully digital process is key to meet our clients’ needs in a rapidly changing market environment”.
Vasakronan’s funding team, effectively utilizing the origination platform, successfully put through its funding targets to its dealers, including Citi. On finding an interested investor, Citi’s MTN desk then relating the same to the Citi’s MTN and legal teams successfully generated the term-sheet and the final terms by employing Origin’s origination technology.
After finalizing, the documents were then digitally shared with the issuing and paying agent.
The credit to creating the origination platform goes to the former bonds and derivatives trader, Raja Palaniappan, who has prior work experience at Lehman Brother, Nomura, and Credit Suisse.