Matheson


News and Insights

Print this page

Search News & Insights


Matheson Advises on the First Digital Platform for the Issuance of Asset-Backed Commercial Paper

AUTHOR(S): Christian Donagh
PRACTICE AREA GROUP: Finance and Capital Markets, Tax, Data Protection, Financial Institutions
DATE: 25.02.2019

Matheson recently advised Landesbank Baden-Württemberg (LBBW) on the creation of the first digital platform for the issuance of commercial paper.

The Weinberg Capital programme, an asset-backed commercial paper (ABCP) programme sponsored by LBBW, was amended to enable the Irish conduit issuer to create and issue commercial paper using distributed ledger technology (DLT) based on the Corda platform.  The commercial paper is governed by Irish law.

This innovation reduces settlement times for commercial paper issued under the Weinberg Capital programme dramatically, from approximately two trading days to less than an hour.

The first commercial paper issued on the Weinberg Capital DLT platform was issued on 14 February 2019 and matured on 19 February 2019.  This represents the first time asset-backed commercial paper has been issued and redeemed using blockchain technology, without using a parallel paper-based process as a fall-back.

Following the successful completion of this initial pilot transaction, LBBW intends to further develop the Weinberg Capital DLT platform and issue commercial paper to a broader range of investors using the platform.

The transaction required close collaboration between multiple teams within Matheson, including its Finance and Capital Markets, Tax, Data Protection and Financial Institutions practice areas.  Matheson’s involvement was led by Christian Donagh, a Finance and Capital Markets partner, assisted by Andrew Gill and Alan Bunbury.  Christian said:

“As an Irish law firm we are proud to have been closely involved with the structuring and implementation of this innovative landmark transaction where Irish law played a crucial role.”

LBBW is one of the largest banks in Germany and, through its association with the Weinberg Capital programme, is also one of the leading sponsors of ABCP programmes in Germany.  LBBW’s press release about this transaction can be viewed here.

BACK TO LISTING



About cookies on our website

Following a revised EU directive on website cookies, each company based, or doing business, in the EU is required to notify users about the cookies used on their website.

Our site uses cookies to improve your experience of certain areas of the site and to allow the use of specific functionality like social media page sharing. You may delete and block all cookies from this site, but as a result parts of the site may not work as intended.

To find out more about what cookies are, which cookies we use on this website and how to delete and block cookies, please see our Which cookies we use page.

Click on the button below to accept the use of cookies on this website (this will prevent the dialogue box from appearing on future visits)