Today, in collaboration with Zürcher Kantonalbank, the Financial Division of the City of Lugano issued a CHF 100 million, 6-year bond with a coupon rate of 1.625%, entirely based on blockchain technology. This bond issuance marks a historical milestone as the first public sector bond to be issued, listed, and traded digitally on a regulated platform based on blockchain technology.
The bond was issued through the innovative SIX Digital Exchange (SDX) platform, linked to the SIX group, which is the world's first fully regulated digital platform based on blockchain technology. This choice of issuing the bond through SDX aligns with the City's vision and mission outlined in the 2018-2028 Development Guidelines and solidifies the City's commitment to being a "model of innovation" and to "promote and support digital transformation, technological innovation, development, and research with the goal of being an avant-garde city."
The City is already actively promoting the use of blockchain technology through the Lugano Plan ₿ initiative, making the decision to issue the bond through the SDX platform consistent with the philosophy of encouraging the adoption of this technology in various areas of activity.
By issuing this bond, the City of Lugano aims to stimulate the public sector to innovate in the financial sector and supports this new method of bond issuance, which constitutes the digital evolution of the traditional system of bond issuance.
The City's bond will be listed simultaneously on both the SDX (digital) platform and the SIX Swiss Exchange (traditional stock exchange), providing dual listing to investors, who will be able to trade the securities on both platforms.
Furthermore, the bond has been officially rated by Moody's at Aa3 and has the characteristics to be included in the Swiss Bond Index, like the other bonds issued in the past by Lugano.
The City would like to thank its partners who made this innovative issuance possible, particularly Zürcher Kantonalbank as lead manager for the issuance, SDX for the technical aspects, and Moody's for the realization of the bond rating.
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