UOB and ADDX collaborate on digital bond servicing

Bond market conceptSingapore-based United Overseas Bank (UOB) and digital securities exchange ADDX have announced the ‘digitisation’ of a sustainability-linked bond issued by local energy firm Sembcorp. According to the two firm’s the move is an industry first in Singapore as the demand for digital securities increases. UOB had been appointed as lead manager for a S$675 million (US$497 million) bond issued by Sembcorp and then partnered with ADDX in order to provide digital custody and administration for a $36.88 portion of the bond. According to Oi Yee Choo, chief commercial officer at ADX, digital securities have enjoyed a higher level of acceptance among blue-chip issuers of bonds over the last year. “Digital securities are in fact well-suited for this use case, because smart contract technology is designed to enable automated actions throughout the life cycle of a bond, including adjustments to the coupon rate, if needed,” she said. “As digital bonds enter a phase of widespread adoption, the cost of fundraising through bonds and other fixed income instruments will continue to fall, and companies that embrace the new technology will be able to raise capital more efficiently,” she added. © 2021 funds global asia

Executive Interviews

Executive interview: PGIM CEO on where the ESG flowers should bloom

Sep 27, 2021

David Hunt, president and chief executive of PGIM, tells Romil Patel about leading a top 10 global asset manager in times where “empowering and encouraging the kind of investment decisions as...

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...


Roundtable: Singapore comes of age as an Asian ESG hub

Dec 01, 2021

Strong ESG credentials strengthen the case for Singapore as a leader in Asia of the post-Covid recovery. Our panel discusses the risks and opportunities.

Roundtable: How well geared are Japanese assets for a new world?

Jul 12, 2021

As we prepare to emerge from Covid, experts look at overcoming demographic issues through a combination of good tech and corporate governance, improving productivity and meeting an ambitious government carbon emissions reduction target. Chaired by Romil Patel.