Big state-owned lender Bank of China (BOC) has made use of blockchain technology to facilitate the issuance of bonds to raise funds for micro and small enterprises.
According to a report from Sina BOC issued 20 billion yuan in MSE loan finance bonds in early December, using its own independently developed blockchain-based bond issuance system.
The MSE finance bonds had a maturity of two years and a coupon rate of 3.25%, and were 2.7 times oversubscribed. Funds raised via the bonds will be used to make loans to Chinese MSE’s.
BOC’s blockchain-based bond issuance system reportedly covers the three stages of:
- Bond issuance preparations;
- Bookkeeping;
- Pricing and allocation.
The system also encompasses a total of eight functions including:
- Bond creation,
- Maintenance of key information,
- Public announcement issuance,
- Formation of underwriting syndicates,
- Management of online documents,
- Bond subscription,
- Order summary,
- Pricing and allocation.
