BNP Paribas partners with EDF ENR to tokenize a bond to finance a sustainable energy project

Two French companies, BNP Paribas and EDF ENR, are collaborating to issue the first bond distributed on the blockchain in the form of tokens. The 2 entities thus wish to simplify the financing of small ecological projects, in particular those centered on solar energy.é-edf-enr-tokeniser-obligation-financer-projet-energie-durable/

BNP Paribas and EDF ENR collaborate to tokenize a bond

The French bank BNP Paribaswhich is also the largest in Europe, collaborates with EDF ENRan EDF subsidiary specializing in support for energetic transitionin order to tokenize for the first time a bond intended to finance a sustainable energy project.

Bond tokenization, in this case, has 2 advantages. Initially, it greatly facilitates the financing of small projects which sometimes struggle to find the necessary funds, by offering the various investors dynamic grouping opportunities.

Secondly, it increases the transparency of these projects, the data relating to the bond being thus issued publicly. More specifically, investors will be able to transparently consider the environmental, social and governance criteria (ESG) of each project before investing thanks to the blockchain.

According David Bouchouchahead of the private debt and real assets division at BNP Paribas Asset Management, the tokenization of this type of bond is the logical continuation of the financing of sustainable energy projects:

“Innovation and sustainability are at the heart of our private debt investment philosophy. Tokenization and blockchain offer new opportunities for portfolio diversification for our clients, hence our commitment to working with strong partners on these new developments. »

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A low-carbon token

The bond was fully structured, tokenized and distributed via AssetFoundry, the tokenization platform of BNP Paribas. Its conservation will be ensured by BNP Paribas Securities Servicesa subsidiary of BNP specializing in multi-assets for banks, institutions and businesses.

The tokens were minted by Exaionthe eco-responsible EDF subsidiary that offers infrastructure and solutions for Web 3.0 in order to ensure the use of clean energy through the blockchain. The tokens have been issued on the Ethereum blockchain (ETH).

For Arnaud Boyerthe director of digital transformation at BNP Paribas Corporate and Institutional Banking (CIB), this new system opens new horizons:

“This is the first financing linked to a renewable energy project based on tokenization […]. This innovation creates new bridges between issuers and investors and provides our clients with a unique end-to-end ESG financing solution – from origination to distribution and custody. »

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Source: BNP Paribas

published by editions Larousse

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