CGS-CIMB, iSTOX launch digital securities issuance in USD 112 mln commercial paper programme

The USD 112-million multi-tranche commercial paper will be used to fund operating expenses and near-term obligations of CGS-CIMB. The first tranche of SGD 10 million was over-subscribed by accredited individual and corporate investors on the iSTOX platform. Investors were offered a 1% per annum interest rate over 3 months. The full SGD 150-million programme is being carried out using digital securities, with no traditional issuance happening alongside the digital channel.

The CGS-CIMB commercial paper is the first in a new product line of digital commercial papers by iSTOX, according to the official press release.

iSTOX is a multi-asset platform that also facilitates digital issuance for other private market securities, including funds, bonds, and equity. Commercial papers are short-term debt issued by companies, with tenures ranging from 1 to 270 days. The commercial paper market is worth over USD 1 trillion in the US and over USD 950 billion in Europe. Asian companies have historically been more accustomed to raising funds through bank loans or bonds or through issuing equity, but commercial papers are gaining momentum.