BNP Paribas claims to have issued the first renewable project bond as a digital asset, with its securities services arm managing the custody aspects of the token.
The bank structured, tokenised and distributed the bond, the proceeds of which aim at refinancing a solar energy project sponsored by EDF through its subsidiary EDF ENR.
Subsequently, the bank has stated that “tokenisation has the potential to be a game-changer for ESG-linked financing”.
“It provides better granularity for smaller amounts, which means that the approach can facilitate the development of smaller renewable energy projects by offering dynamic bundling opportunities to investors,” BNP Paribas said.
Solar–based electricity production is the leading energy transition segment, with several trillions of financing needs in the near future. Almost half of these financing needs will come from smaller projects, which BNP Paribas believes are currently being underserved.
“This trade, based on tokenisation for renewable financing, is the first of its kind, and fully aligned with the Bank’s development plan: ‘Growth, Technology and Sustainability 2025’,” said Arnaud Boyer, chief digital officer at BNP Paribas Corporate and Institutional Banking (CIB).
“This innovation creates further bridges between issuers and investors, bringing a unique end-to-end ESG financing solution to our clients – from origination to distribution, to custody.”