top of page
Puertas Torii

Feasibility Analysis for Bonds Issuance in Asia

Comprehensive Feasibility Analysis for New Technology-based Government Debt Issuance

client asian.png

The Ministry of Finance in a Southeast Asian government sought innovative methods for issuing government debt, primarily driven by the lengthy T*+15 days settlement cycle associated with current bond transactions. 

 

The traditional issuance process is hindered by redundant record-keeping and manual or repetitive tasks, leading to significant reconciliation efforts. This situation not only increases the settlement time but also raises the costs of issuance.


To tackle the issue, we conducted a thorough assessment of the technical, financial, and operational factors to assess the viability of integrating new technologies such as blockchain and DLT.

 

This led to the development of a conceptual platform designed to reduce the settlement cycle to T+2 days, enhancing efficiency and cutting costs of the issuance.

*Note: T = Trade date

novel gov issuance in asia.png

Main Results

check-removebg-preview.png

+90% expected time reduction in the bond settlement cycle

check-removebg-preview.png

10x expected cost savings opportunities

check-removebg-preview.png

A more efficient, transparent and effective primary issuance should contribute to a more attractive secondary market, hence improving liquidity

bottom of page