Russia’s leading telco MTS places bonds using blockchain

MTS, the leading telecommunications provider in Russia has placed bonds using blockchain technology. The bonds, worth RUB 70 million were offered and the issuance executed through blockchain’s smart contract. A smart contract allows the platform to execute transactions at the event of defined conditions being met and automates the entire process.

The bonds have a maturity period of 128 days, attract a 6.8% annual coupon rate and were privately placed on the OTC market. MTS used the National Settlement Depository’s (NSD) propriety blockchain, that was first developed as a prototype in the first quarter of 2017.

The blockchain is based on Hyperledger Fabric 1.1 and it executed the transaction through delivery versus payment settlement.

Andrey Kamensky, the finance and Investments VP at MTS says:

“MTS has been on the frontline in testing new technologies across vast business areas. The bond placement through blockchain technology was successfully executed through smart contracts and this places us in the vanguard of technological breakthroughs.”

NSD’s board chairman, Eddie Astanin commented:

 “The successful placement of the bonds affirmed blockchain’s position in the industry as a fast and transparent option. These aspects are key components in building programs that are attractive to investors.”