A subsidiary called Societe Generale SFH used the OFH token (obligations de financement de l’habitat, or home financing obligations) to represent EUR 100 million of covered bonds, a type of security that is backed by specific assets but remains on the issuer’s balance sheet.
The financial group was “the sole investor,” meaning the company issued the securities to itself and no outside buyers were involved. The bond has a five-year maturity with a 12-month extension period. It is pari passu (“on equal footing”) with other covered bonds of the issuer, meaning if the company were to fail, whoever held the tokens at that time would be repaid the same fractional amounts at the same time as regular bondholders, CoinDesk cited a report from bond rating agency Moody’s Investors Service.
The pilot was designed by Societe Generale’s blockchain subsidiary Societe Generale FORGE, “one of the 60 internal startups launched via the Internal Startup Call, the Group’s intrapreneurial programme,” the company said for the online publication.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now