Siemens Leads Financial Innovation with New €300 Million Blockchain Bond Issuance

Siemens Leads Financial Innovation with New €300 Million Blockchain Bond Issuance

(IN BRIEF) Siemens has issued a €300 million digital bond using blockchain technology, continuing its leadership in digital finance. This new bond, with a one-year maturity, was settled through SWIAT’s private blockchain and the Bundesbank Trigger Solution, significantly speeding up the settlement process from two days to minutes. This move supports the European Central Bank’s trials of distributed ledger technology for securities settlement. Siemens’ successful issuance follows its first digital bond last year, further advancing its role in the digital transformation of capital markets.

(PRESS RELEASE) MUNICH, 5-Sep-2024 — /EuropaWire/ — Siemens has once again made headlines in the financial sector by successfully issuing a €300 million digital bond using blockchain technology, reaffirming its role as a leader in the digital transformation of capital markets. This latest bond issuance, which has a maturity of one year, highlights Siemens’ ongoing commitment to pioneering innovations in financial technology.

Building on the success of its first digital bond issued last year, Siemens continues to push the envelope in digital finance by supporting European Central Bank (ECB) trials of distributed ledger technology (DLT) for securities settlement. This initiative aligns with broader efforts to test and implement blockchain solutions for efficient and secure financial transactions.

The newly issued bond, processed through SWIAT’s private permissioned blockchain and utilizing the Bundesbank Trigger Solution, marks a significant advancement in the automation of securities transactions. Unlike the previous bond issuance, which required a two-day settlement period, this transaction was completed within minutes, dramatically reducing settlement risk and enhancing efficiency.

Ralf P. Thomas, Chief Financial Officer of Siemens AG, emphasized the company’s dedication to innovation: “With each digital bond issuance, we further solidify our role as a trailblazer in digital financial solutions. Our focus remains on advancing these technologies to shape the future of capital markets.”

Peter Rathgeb, Corporate Treasurer of Siemens AG, highlighted the transformative potential of this technology: “The rapid automated processing of this bond showcases the significant capabilities of blockchain and our commitment to driving digital transformation in the financial sector. We are proud to contribute to the evolution of capital markets through our innovative partnerships.”

DekaBank served as the bond registrar, while BayernLB, DekaBank, DZ BANK, Helaba, and LBBW were the primary investors. Deutsche Bank facilitated the settlement of the bond in central bank money via the Bundesbank Trigger Solution.

This new issuance underscores Siemens’ role in advancing digital finance and illustrates the growing adoption of blockchain technology in the financial industry.

Siemens AG (Berlin and Munich) is a leading technology company focused on industry, infrastructure, mobility, and healthcare. The company’s purpose is to create technology to transform the everyday, for everyone. By combining the real and the digital worlds, Siemens empowers customers to accelerate their digital and sustainability transformations, making factories more efficient, cities more livable, and transportation more sustainable. Siemens also owns a majority stake in the publicly listed company, Siemens Healthineers, a leading global medical technology provider shaping the future of healthcare.
In fiscal 2023, which ended on September 30, 2023, the Siemens Group generated revenue of €74.9 billion and net income of €8.5 billion. As of September 30, 2023, the company employed around 305,000 people worldwide on the basis of continuing operations. Further information is available on the Internet at www.siemens.com.

Notes and forward-looking statements
This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in prospectuses, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Report on expected developments and associated material opportunities and risks in the Combined Management Report of the Siemens Report (siemens.com/siemensreport), and in the Interim Group Management Report of the Half-year Financial Report (provided that it is already available for the current reporting year), which should be read in conjunction with the Combined Management Report. Should one or more of these risks or uncertainties materialize, should decisions, assessments or requirements of regulatory authorities deviate from our expectations, should events of force majeure, such as pandemics, unrest or acts of war, occur or should underlying expectations including future events occur at a later date or not at all or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

This document includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens’ net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Media Contacts:

Simon Friedle
Siemens AG
+49 1525 2159076
simon.friedle@siemens.com

Stefania Demuro
Siemens AG
+49 172 2488490
stefania.demuro@siemens.com

SOURCE: Siemens AG