From Lugano a digital loan of 100 million francs

Thanks to Zürcher Kantonalbank, SDX and Moody's, record of the city on Ceresio for the highest bond issue with Blockchain technology

Blockchain: Piazza Riforma is the seat of the town hall and the main square of the city of Lugano in Switzerland
Piazza Riforma is the seat of the town hall and the main square of the city of Lugano in Switzerland

In recent weeks we have informed you about the initiatives underway in Lugano for the promotion of activities in the Blockchain area, the innovative digital technology that also allows the exchange of decentralized currencies, cryptocurrencies.
In particular, at the beginning of November, we gave news of the Plan B Forum, which had seen the world's leading experts on the subject converge in the city of Ceresio.
Immediately afterwards, still in Lugano, we reported that during the “Lugano Finance Forum” 2022, Massimo Butti, head of product and process development at SDX, the world's leading financial transaction accounting platform, informed the international securities community that “traditional finance is converting to new digital procedures”.

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Blockchain: the Mayor of Lugano, Michele Foletti, on the occasion of the presentation of the Lugano's Plan project ₿
Blockchain: the Mayor of Lugano, Michele Foletti, on the occasion of the presentation of the Lugano's Plan project ₿

"A model of innovation" to "be a cutting-edge city"

The decision to carry out this bond issue through SDX, informs the press release of the Finance Division of the financial capital of the Italian-speaking macro-area south of the Gotthard, is consistent with the vision and mission set out in the 2018-2028 Development Lines and concretizes the orientation of the City to want to be a “model of innovation” and "promote and support digital transformation, technological innovation, development and research, with the aim of being a cutting-edge city".
The City, continues the official statement of the Lugano municipal authorities, already actively promotes the use of Blockchain technology with the initiative Lugano Plan's ₿.
The decision to carry out this issuance through the SDX platform is consistent with the philosophy aimed at encouraging the adoption of this technology in various sectors of activity.
With this operation, the City of Lugano intends to stimulate the public sector to innovate also in the financial sector and supports this new issue method, which constitutes the digital evolution of the traditional bond issue system.

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Blockchain: Zurich Cantonal Bank or Zürcher Kantonalbank is the largest cantonal bank and fourth largest bank in Switzerland, as well as the leading provider of financial services in the Greater Zurich area, with total assets of over CHF 150 billion
Zurich Cantonal Bank or Zürcher Kantonalbank is the largest cantonal bank and fourth largest bank in Switzerland, as well as the leading provider of financial services in the Greater Zurich area, with total assets of over CHF 150 billion

A term of six years and coupon set at 1,625 percent

Today's news is that, as part of the usual capital raising on the financial markets, the Finance Division of the City of Lugano has issued, in collaboration with the Zürcher Kantonalbank, a bond loan of 100 million francs, with a term of 6 years and 1,625 percent coupon, based entirely on Blockchain technology.
The issue of the new bond of the City of Lugano took place via the innovative SIX Digital Exchange (SDX) platform, linked to the SIX group and the Zurich Stock Exchange
The issue represents the first bond in the history of the public sector to be issued, listed and traded digitally on a regulated platform based on Blockchain technology.

Blockchain: the logotype of the SIX Swiss Exchange
The logotype of the SIX Swiss Exchange

Listed on the SDX platform and on the SIX Swiss Exchange in Zurich The City's bond issue will be listed simultaneously on both the SDX platform (digital) and on the SIX Swiss Exchange platform (traditional stock exchange), guaranteeing a dual listing for investors, who will thus be able to trade the bonds on two platforms.
Furthermore, the bond loan has obtained an official AA3 rating from the Moody's rating agency and has the characteristics to be included in the Swiss Bond Index, like the other loans issued in the past by Lugano.
The City thanks the partners who made this innovative issue possible, in particular the Zürcher Kantonalbank in the role of lead manager for the issue, SDX for the technical part and Moody's for the rating of the bond loan.

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Blockchain: the city of Lugano in the Canton of Ticino seen from Monte San Salvatore
The city of Lugano in the Canton of Ticino seen from Monte San Salvatore (Photo Enrico Boggia)