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In this edition of In the Know, we will provide a “primer” in respect of the developments in the digital bond space, using the EIB bond as a potential bellwether event for future development in our markets and then try and address some fundamental questions — what does all this mean for our market? Where are we headed now?

Key Takeaways:

  • European Investment Bank (EIB) issuance of a digital bond is an excellent example of innovation in the bond market.
  • There are significant opportunities for the use of blockchain technology across the bond and wider leveraged finance markets.
  • Definitions of key terms including: digital bonds, digital ledger technology, blockchain, and the smart contract.
  • Regulatory considerations/common infrastructure.
  • Market participants and their advisors should keep an eye on this space and continue to develop their understanding of the role that digitisation can have for efficient operation of our markets.

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Author

Sue is a partner in Baker McKenzie's IP, Data and Technology team based in London. Sue specialises in major technology deals including cloud, outsourcing, digital transformation and development and licensing. She also advises on a range of legal and regulatory issues relating to the development and roll-out of new technologies including AI, blockchain/DLT, metaverse and crypto-assets. Her IP and commercial experience includes drafting, advising on and negotiating a wide range of intellectual property and commercial agreements including IP licences and assignment agreements, long-term supply and distribution agreements. She also assists clients in preparing terms of business and related documentation for new business processes and offerings and coordinating global roll-outs. Sue is also a key member of our transactional practice, providing strategic support on the commercial, technology and intellectual property aspects of M&A transactions and joint ventures, including advising on transitional services agreements and other key ancillary IP and commercial agreements. Sue is ranked as a leading lawyer in Chambers for Information Technology & Outsourcing and Fintech Legal and in Legal500 for Commercial Contracts, IT & Telecoms, TMT and Fintech. Clients say of Sue "Sue is outstanding", "She is a really good and very committed lawyer", "Excellent…. Very capable, wouldn’t hesitate to use on IT/TMT/Outsourcing matters." Sue was named in the Standout 35 of the Women in FinTech Powerlist 2020.

Author

James's practice focuses on debt capital markets, securitisation and portfolio sales/acquisitions of both distressed and non-distressed assets. He also has experience across a range of financing transactions and products, including sovereign advisory matters, cross-border restructurings, CLOs and has a rapidly expanding sustainable finance / green bonds practice.

Author

Elaine is a New York qualified senior associate in the Firm’s Corporate Finance group in London. Prior to joining the Firm in 2021, she worked in leading US law firms in London and New York. Elaine has experience working on a wide range of corporate finance transactions, including high yield debt offerings, liability management transactions, syndicated credit facilities and restructuring transactions.

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