Lugano Issues Third Digital Bond Worth $139 Million

According to Foresight News, the city of Lugano in Switzerland has issued its third digital bond, valued at 120 million Swiss francs (approximately $139 million). This bond has a maturity period of nine years and carries a coupon rate of 1.00%. It was issued through the SIX Digital Exchange (SDX) and settled using wholesale central bank digital currency (wCBDC). This issuance follows Lugano's previous digital bond offerings. The city first issued a digital bond worth 100 million Swiss francs in 2023, followed by another issuance of the same amount in February of this year. These initiatives highlight Lugano's ongoing efforts to leverage digital financial instruments and integrate them into its financial ecosystem. The use of wCBDC for settlement underscores the city's commitment to adopting innovative financial technologies and enhancing the efficiency of its financial transactions.