Blockchain has conquered it all, there is no doubt about this. The technology has been used in multiple sectors and industries, especially in the financial world.
Now, one of the world’s giants in mechanics and engineering, Dürr AG, has managed to secure a loan of EUR 750m on a “sustainable base” through blockchain. The information comes from a news post by the company. The interest rate on this sizeable amount is linked to its sustainability ranking or eco-friendly performance.
The platform used for the loan was blockchain-based syndicated loan platform. In addition, the cash credit portion of the loan amounts to EUR 500m, while the rest is a guarantee line. The entire process was digitalized and performed on blockchain as well, which is a ground breaking step in disrupting the loan market.
Dürr is actually not new to this sustainable-loan model. As reported by the company itself, in June 2019, Dürr became the first company in the world to issue a bonded loan based in sustainability criteria, in which the interest rate depended entirely on how sustainable the company’s rating is.
The new loan of EUR 750m was syndicated by 13 banks including UniCredit, BNP Paribas, Commerzbank and Deutsche Bank. Even the process of arranging the consortium was done in a digital manner – through a software called Targens, where participants create their own digital identities and go from there to do their role in the consortium.
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