The beginning of a new era: SIX launches its SIX Digital Exchange by successfully issuing „the world’s first digital bond in a fully regulated environment”

SIX placed the first senior unsecured digital CHF bond with a total volume of CHF 150 million and maturity in 2026 via its holding company SIX Group Ltd.

The bond comprises two exchangeable parts. The digital part (Part A) of the bond will be listed and traded on SDX Trading Ltd and centrally held by SIX Digital Exchange Ltd. The traditional part (Part B) of the bond will be listed and traded on SIX Swiss Exchange Ltd and centrally held by SIX SIS Ltd.

„This innovative approach ensures the link between the digital and traditional worlds,” according to the press release.

The digital part (Part A) of the bond accounts for CHF 100 million of the total issue volume. CHF 50 million was allocated to the traditional part of the bond (Part B). The coupon amounts to 0.125% per year, corresponding to a yield to maturity of 0.125%. Unless the bonds are repaid prematurely or acquired and canceled, they will be repaid at their nominal value on the due date. The company will use the net proceeds of the bond placed for general financing purposes of SIX.

„Today’s issuance is an extraordinary success, as this is the world’s first bond issuance with a pure digital part in a fully regulated environment. The offering was oversubscribed several times and attracted strong interest from a very broad institutional investor base in Switzerland,” SIX said.

Daniel Schmucki, CFO SIX: “This is an innovative and historic transaction as it is the first of its kind in the world on a regulated and fully integrated digital exchange.”

Thomas Zeeb, Global Head Exchanges at SIX: “The first issue of a tokenized bond on the SIX Digital Exchange as well as its listing and placement in the market proves that the forward-looking distributed ledger technology (DLT) also works very well in the highly regulated capital market. This transaction marks the beginning of a new era.”