İşbank issues first digital bond with blockchain technology in Türkiye

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​İşbank becomes the first bank in Türkiye to issue a $100 million digital eurobond using blockchain technology, an investment by the International Finance Corporation (IFC).

The Eurobond, issued through Euroclear's Digital Financial Market Infrastructure (D-FMI), will be used to expand access to finance for individuals, farmers, microbusinesses and small businesses in the provinces of our country affected by the earthquakes on February 6, 2023. Citi served as dealer and issuing and paying agent for the issuance.

The bond is called a 'Digitally Native Note' and is issued using Distributed Ledger Technology (DLT). This technology allows for secure and decentralized record-keeping and facilitates the issuing and settlement of bonds. Accordingly, the Eurobond issuance was settled on the same business day the transaction was executed.

First Eurobond issuance by a private bank in Türkiye and in an emerging market using blockchain technology

İşbank CEO, Hakan Aran emphasized that they were proud for completing the first digitally native Eurobond issuance by a private bank in Türkiye and emerging markets, in a year when İşbank welcomes its second century. “This transaction is a testament to the Turkish banking sector's ability to access international financial markets, reflecting its maturity and rapid adaptation to new technologies. It underscores İşbank's pioneering role in driving innovation, particularly by setting a precedent for the use of blockchain in capital market transactions. We are delighted to lead in fostering new financial instruments through ongoing technological progress. In addition to the significance of the technology used for the issuance, the funds will be used by producers and manufacturers in the earthquake-affected region, another key factor that strengthens the value of the transaction."

“This investment marks an important milestone in financial innovation - it is Türkiye's first digital bond," said Makhtar Diop, Managing Director of IFC. “Issued on a blockchain platform, the bond is set to deliver timely working capital to thousands of businesses affected by the earthquakes in Türkiye. By using new digital technology in the bond market, we are making financing more accessible and channeling critical capital to the entrepreneurs who need it most to rebuild and recover."​