LuxSE, Origin Complete 1st Fully Digital Listing by BIL

The Luxembourg Stock Exchange (LuxSE) and London-based fintech company Origin have announced the successful completion of the first fully digital listing of a debt security on LuxSE via Origin’s digital platform.

The very first bond issuance to be listed at LuxSE through the digital process of the Origin platform was a €10 million senior note issuance by Banque Internationale à Luxembourg (BIL), issued and listed on LuxSE on Friday 26 February 2021.

Arnaud Delestienne, Director of International Capital Markets and Member of the Executive Committee at LuxSE, commented: “This digital listing marks a milestone for our exchange and for our productive collaboration with Origin. We are convinced that digital workflows and streamlined processes will bring multiple benefits to issuers and other parties involved in a bond issuance. Digital solutions make capital markets more efficient and easier to navigate, and we are excited to be driving this change”.

Through digital deal execution and automated documentation flows, Origin aims to make the issuance process for new financial debt instruments more reliable and efficient, as well as reducing the risk of errors stemming from manual processes.

Origin’s platform makes it possible for market players to generate, share and approve fully customisable term sheets and final terms. Once the final terms of a bond issuance are confirmed, the security can be listed on LuxSE via the Origin platform. This seamless listing of a debt security is made possible via an Application Programming Interface (API) developed by LuxSE that allows the documents and information created on Origin’s platform to be shared with the exchange without the need for the issuer to take any action apart from selecting LuxSE as listing option on the Origin platform. 

Raja Palaniappan, CEO of Origin, explained: “It is vitally important to us that the work we do and the products we build ultimately add value to our clients and make their lives easier. That’s why we are so excited to have crystallised our collaboration with the Luxembourg Stock Exchange with this very first digitally listed transaction for BIL, and we hope this will be the first of many such transactions. Enabling digital listing is an important part of the roadmap towards building a truly digital capital market”.

Origin’s platform for bond issuance is particularly relevant for repeat issuers who are active in capital markets and who are looking for ways to streamline and automate the issuance process.

The BIL deal that became the first issuance to be listed on LuxSE via Origin is a fungible tranche, an increase of a transaction of a total size of €271 million. Deutsche Bank acted as the dealer on the transaction.

Olivier Habay, Head of Long Term Funding at BIL, stated: “As a Luxemburg issuer, we were pleased to be a pioneer to test the e-listing of the Luxembourg Stock Exchange through the API solution set up in collaboration with Origin. This innovative experience enabled all parties involved to ramp up the automation and strengthen efficiency all over the issuance process”. 

LuxSE initially acquired a 10% stake in Origin in 2019. In 2020, LuxSE strengthened its investment in the company as other investors entered the Series A funding round.