Linklaters advises Joint Lead Managers on first benchmark DLT-native sovereign bond issuance by the Grand Duchy of Luxembourg

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Jörg Overbeck
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Linklaters has advised the Joint Lead Managers on the first benchmark issuance by the Grand Duchy of Luxembourg of DLT-native sovereign bonds through LuxCSD, Luxembourg's central securities depository, using Clearstream's D7 DLT platform. The bond issuance has a nominal amount of €1.7bn, a coupon of 3.70% and a 10-year maturity. The bonds are admitted to trading on the regulated market of the Luxembourg Stock Exchange. The transaction was carried out with the support of Banque et Caisse d’Epargne de l’Etat, acting as lead manager, fiscal agent, principal paying agent, LuxCSD principal agentand listing agent. The syndicate banks, Barclays, BGL BNP Paribas, Citi, Crédit Agricole CIB and Banque et Caisse d’Epargne de l’Etat contributed to the placement of the bond to international investors. 
 

Linklaters Capital Markets partner Nicki Kayser commented: “This issuance represents a major milestone in the evolution of Luxembourg and European capital markets. We are delighted to have advised on this innovative transaction and proud to continue to be on the forefront of the digitalisation.” 

Linklaters has been advising on the legal and structural frameworks underpinning some of the most significant transactions in the space of digitalisation. The firm's work draws on its deep expertise across tokenisation, digital assets, capital markets regulation, and financial infrastructure - combining the resources to navigate the multi-jurisdictional legal considerations inherent in a transaction of this nature. 

Nicki Kayser led the team advising the Joint Lead Managers. The team included lawyers from Luxembourg, London and Paris, notably Delphine Horn, Adrian Danciu and Liam Embleton (all Capital Markets, Luxembourg).