Germany’s Vonovia Completes $24M Bond Offering via Stellar blockchain
Prominent European real estate business group Vonovia has successfully issued a €20 million (~$24 million) debt via the Stellar blockchain. As per the media release, Vonovia has used Stellar blockchain to disburse security tokens for changing rights related to real estate.
Using firstwire, an online marketplace, the firm disbursed the tokens. Vonovia stated that the bond issued via blockhain platform will be valid for a period of three years.
Helene von Roeder, CFO at Vonovia, stated that the blockchain platform facilitated digitization of bond allowed the real estate firm to fund quickly, easily and in a cost-effective manner.
Roeder underlined that “Issues are transparent and traceable in real time, which guarantees a professional transaction standard. It also allows us to reach new investors globally.”
Back in September 2019, Vonovia had placed a promissory note worth €50 million (~$61 million) on the firstwire marketplace.
The bond digitization initiative has come soon after German regulators formally endorsed the disbursement of digitized securities in the final leg of 2020. Last month, a law terminating the need for physical certificate for security sale was terminated by the German government. That paved way for digitization of securities using blockchain platform.
The Stellar network is widely becoming the choice of various government organizations in the past few months. Earlier this month, the Ukranian government entered into collaboration with the Stellar Foundation in its endeavor to create a central bank digital currency and also a digital asset environment.