Santander supports ESM’s first €1 billion Digitally Native Note

The European Stability Mechanism (ESM) has raised €1 billion through the sale of its first digitally native bond, with Santander CIB acting as Joint Bookrunner.

The transaction is designed to combine distributed ledger technology (DLT) with the operational familiarity of a traditional bond, enabling investors enabling investors to retain the same rights and issuer credit risk profile associated with conventional ESM issuances.

The bond was issued through Clearstream’s D7 DLT platform in the context of the Eurosystem’s Pontes initiative. It matures in April 2030 and is expected to be eligible for European Central Bank operations and compatible with existing clearing and settlement infrastructure.

ESM is the permanent crisis-resolution mechanism for euro area member states and a regular issuer in international capital markets. By completing its first digitally native bond, ESM has taken an important step in demonstrating how DLT-based issuance can operate alongside established capital-markets infrastructure.

Santander’s participation reflects its continued involvement in the development of financing solutions that connect issuers and investors with evolving digital market infrastructure.