The city of Lugano, Switzerland issues $139 million in digital bonds, settling using wholesale CBDC

ChainCatcher news, the city of Lugano, Switzerland has issued digital bonds worth 120 million Swiss francs (139 million USD), marking the third bond issued by the city. The city currently issues bonds exclusively through the SIX Digital Exchange (SDX). Due to strong demand, the issuance price of this 9-year 1% coupon bond is above its face value.

The digital bonds will be settled using wholesale CBDC. This is the first bond issuance since the Swiss central bank announced the extension of the wCBDC pilot two years ago in June. The joint lead managers for this issuance are Basler Kantonalbank, Raiffeisen, J. Safra Sarasin, and Zürcher Kantonalbank.