On November 23 news, the previously announced postponement of the US$3 billion ERC20 bond issuance with CCB as the issuance adviser has been cancelled. It took less than one month from the release of the issuance plan to the announcement of the cancellation. The editor will sort out the ins and outs of the whole incident and show you the process of “the first domestic bank to issue USD bonds using digital tokens to abort”.
On November 11, the announcement of the issuance of digital token USD bonds with CCB acting as a consultant was announced. The specific news pointed out that China Construction Bank plans to cooperate with Hong Kong financial technology company Fusang to sell a digital bond through the Labuan branch of Construction Bank Malaysia to raise no more than US$3 billion. According to media reports, this is the first domestic bank to use digital tokens to issue USD bonds.
The digital bond issued this time will be issued on Ethereum in the form of ERC20 tokens with a face value of US$100 and the tokens will be listed on the Fusang Exchange.
With the help of blockchain technology, all individual and institutional investors except American and Chinese tax residents and Iranian and North Korean individuals and entities can buy and sell the bond with U.S. dollars and Bitcoin. Because the smallest trading unit is an ERC20 token, investors can become the owner of this bond with only $100 and get a return of 50 basis points (about 0.75%) higher than the Libor.
The listing was originally scheduled to go live on the exchange at 12 noon Malaysian time on Friday, November 13, 2020.
The editor has compiled detailed information on specific plans such as issuers, promoters, lead underwriters, issuance scale, planned deadlines, issuance arrangements, etc.-We have detailed information on the issuance of US$3 billion ERC20 bonds by CCB.
However, at that time, CCB stated that it was not a bond issuer, but was only the lead arranger and issuance consultant, and also acted as the clearing and settlement agent bank for US dollar funds. China Construction Bank does not accept cryptocurrency bank transactions including Bitcoin.
On November 16, after only 5 days, the issuance of the US$3 billion ERC20 bond was announced to be postponed. Hong Kong financial technology company Fusang Securities Exchange (FusangExchange) announced that, at the request of the issuer, the digital bond “LongbondSRNotesUSDFeb2021” (code-name “LBFEB21”) with China Construction Bank Co., Ltd. Labuan Branch (CCBL) as the issuance advisor will be postponed. .
When the time came on November 23, the Hong Kong financial technology company Fusang Securities Exchange (Fusang Exchange) stated that at the request of the issuer, the Longbond, a digital bond based on Ethereum, initiated by China Construction Bank Co., Ltd. Labuan Branch (CCBL) SR Notes USD Feb 2021 (code name LBFEB21) has been cancelled. At present, the decision has been accepted and the suspension of listing has been announced with immediate effect, and it has ensured that all relevant listing procedures are withdrawn in an orderly manner and the return of all investors’ funds has begun.
According to the announcement, on Monday, November 16, 2020, the Exchange had formally written to the listing sponsor asking for the reason for the postponement and requesting an update to the listing schedule. The listing sponsor replied on Friday, November 20, 2020, “The decision is not to proceed.”
The CEO of Fuso Securities Trading Platform responded that the issuer has not given a reason for trading suspension.
