KfW's First Distributed Ledger-Based Bond Rated 'AAA', Marking Issuer's Next Step On Digitalization Path

FRANKFURT (S&P Global Ratings) May 24, 2024--S&P Global Ratings today assigned its 'AAA' issue rating to the planned digital, distributed ledger-based bond issue currently prepared by KfW (AAA/Stable/A-1+), Germany's government-owned development bank. The rating reflects our view that, despite the novel format, the transaction enjoys the same creditworthiness as KfW's conventional bond issuance. Expected to be priced toward the end of this or the beginning of the next quarter, the senior unsecured transaction with an anticipated minimum size of €100 million and tenor of 1.5 years ranks pari passu with all KfW's other senior unsecured, unsubordinated obligations. The bonds will not be listed. The new issue represents the first time KfW will employ distributed ledger technology to issue and transfer

...May 24, 2024 FRANKFURT (S&P Global Ratings) May 24, 2024--S&P Global Ratings today assigned its '###' issue rating to the planned digital, distributed ledger-based bond issue currently prepared by KfW (###/Stable/A-1+), Germany's government-owned development bank. The rating reflects our view that, despite the novel format, the transaction enjoys the same creditworthiness as KfW's conventional bond issuance. Expected to be priced toward the end of this or the beginning of the next quarter, the senior unsecured transaction with an anticipated minimum size of 100 million and tenor of 1.5 years ranks pari passu with all KfW's other senior unsecured, unsubordinated obligations. The bonds will not be listed. The new issue represents the first time KfW will employ distributed ledger technology to issue and transfer bonds. Issued as uncertificated electronic securities under the German Electronic Securities Act ("eWpG"), the transaction will rely on a blockchain-based register provided by Cashlink...

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