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Published on: September 15, 2021
World’s first fully-digital private bond launched to finance affordable housing in England
LONDON, LUXEMBOURG, MUNICH
Black Manta Capital Partners (“BMCP”) introduces into the market the world’s first fully-digital private bond as the primary placement agent for IDAP Alternative Investments’ securitization platform, financing an affordable housing project in England in the total amounting to 15 million British pounds sterling. The fully-digital private bond is enabled by Globacap through its private placement solution using blockchain technology.
Lares Digital Bonds (3.5-year 7%-fixed annual-yield securities, in an aggregate amount of £15 million) is the first fully-digital private bond offering, combining the strengths of two major global finance centers in London and Luxembourg.
The offering is made possible by changing the way that private placement and structured financing is traditionally done to make it more efficient and accessible for both project owners and a wide range of investors.
Lares Digital Bonds came to life as the first private digital bond offering through the combination of the technical and regulatory expertise of Black Manta Capital Partners and Globacap, IDAP’s innovative approach to project financing, and the proven legal and traditional financing expertise of Amicorp Luxembourg and CMS Luxembourg. The bonds are governed by state-of-the-art KYC and AML processes, and delivered through a completely digital, end-to-end investor journey. Private and institutional investors can now enjoy the ease and comfort of a fully digitized investment process and the ability to trade their investments in Lares Digital Bonds without the costs or hassle of the traditional method.
With an entirely digital process, including the bonds themselves and the registry,
- investors receive higher returns, because of lower intermediary costs in a completely digital process;
- the investment process is reduced from days to minutes, as there’s no need to physically show up with a passport and notarized documents to pass KYC/AML — it’s all handled through your laptop or smart phone instead;
- after-market transactions are nearly instantaneous (minutes or seconds instead of the traditional T+2 settlement time of traditional clearinghouses); and,
- redemption and coupon payments are automatic.
“We are proud to be part of this project, as it is fully aligned with our vision of digitized assets”, said Alexander Rapatz, Co-Founder and Managing Partner of Black Manta Capital Partners. “Black Manta Capital was an early entrant, and we’ve handled everything from tokenization of real estate to equities, to funds. When IDAP brought us the opportunity to bring our tokenization expertise to the project financing space, we knew this was the next step.”
Alexander Green, Chief Evangelist and Co-Founder of Globacap, commented: “Globacap’s mission is to change the way capital markets operate, completely overhauling the traditional process. With our complete, digital ecosystem, processes are automated to significantly reduce admin time and accelerate deal closure. We’re really proud to see it in action as part of this partnership with IDAP and BlackManta, pushing into the project financing space. We’re taking a significant step towards a fully digitised future and to see it happen this way in private placement is fantastic.”
Thanks to this pioneering partnership, this is the first of many project financing deals that will be introduced to the market utilising this innovative approach.
About Black Manta Capital Partners
BMCP is a full-service agency for all technical, financial, and legal aspects of asset tokenization. BMCP runs a Multi-STO platform that aims to set a global standard for security token offerings (“STOs”). BMCP was founded in Luxembourg in 2018 and runs BMCP GmbH in Munich as a licensed and BaFin-regulated Financial Service Institute, consulting entity BMCP Consulting GmbH in Vienna, and international business development through its Irish BMCP Limited.
About IDAP Global
IDAP Global is an independent, boutique advisory that helps great projects get the fuel they need to grow from success to superstardom, through structuring, simplifying, and scaling project financing. IDAP created its own fully digital securitisation platform to help businesses with high-quality projects in any domain — from affordable housing, to hydroponics, or even show-jumping horse development — to create financeable deals and turn opportunities into realities.