Citi and Vasakronan execute first MTN on Origin
Swedish real estate firm Vasakronan, with the assistance of Citi, has successfully raised AU$30 million ($21.07 million) using the Origin platform – becoming the first digitally issued medium term note (MTN).
Origin’s origination platform connects issuers with dealers in the debt primary markets. Citi and Vasakronan were able to fully automate documentation and communication flows.
“We are pleased to collaborate with Origin to handle this milestone trade on behalf of Vasakronan,” says Amaury Gossé, global head of MTNs at Citi. “As issuers continuously look for increased efficiency, speed and transparency, the ability to support a fully digital process is key to meet our clients’ needs in a rapidly changing market environment”.
Vasakronan’s funding team used the platform to share its funding targets to its dealers, including Citi. Once Citi’s MTN desk found an interested investor, Citi’s MTN and legal teams were able to automatically generate the term-sheet and the final terms using the Origin technology.
Once the documents were finalised, they were digitally shared with the issuing and paying agent.
The platform was created by the former bonds and derivatives trader, Raja Palaniappan, who worked at Lehman Brother, Nomura and Credit Suisse.
