Security Token Issuance Platform IGNIUM Launches €10 Million Short-Term High Yield Asset Backed Fixed Income Global Bond Token Issuance in Partnership with Viking Commodities Capital OÜ
TALLINN — International security token issuance and settlement platform IGNIUM www.ignium.io is proud to announce the launch of another bond token issuance through its platform. This is the first bond token to be asset-backed by a commodity: in this case, grain. The issuing company is Viking Commodities Capital (VCC) OÜ.
VCC’s bond issuance program has an aggregate value of €10 million in working capital that will be used to fund international grain-trading activities of the specialised trading companies. The first recipient of the trade finance funding is Viking Trading OÜ, a seasoned international grain-trading firm. Investors in VCC will now have the ability to manage their investments through Ignium’s blockchain-based infrastructure. The first token issuance, with an aggregate value of more than €3 million, has been completed successfully and fully-subscribed.
BRIDGING THE TRADITIONAL FINANCIAL WORLD WITH CUTTING-EDGE FINANCIAL TECHNOLOGY
The launch of Viking Commodities Capital’s bond token sale also marks another important moment in global trade finance history: the convergence of a conventional trading business (grain-trading) and globalised blockchain technology (Ignium) resulting in a cutting-edge trans-continental financial and technological fundraising mechanism (bond token issuance).
Indeed, by issuing a bond token through Ignium’s platform, Viking Commodities Capital is solving two critical capital-related issues at once:
- The token issuance will overcome barriers that plague traditional trade finance and capital markets — specifically, market fragmentation and localisation. Traditional financial markets have become split along geographical and jurisdictional lines, which has caused companies to have limited access to working/investor capital.
- Providing a short-term, high yield, asset-backed, fixed income product to global investors. Capital markets are in shortage of 6-months bonds with a 10% per annum coupon rate. These are the kinds of bonds that are provided by VCC through Ignium. Investors across the world can seamlessly and operatively subscribe to these through Ignium’s platform.
COMPANIES CAN ACCESS UNIQUE FUNDRAISING OPPORTUNITIES THROUGH IGNIUM
Ignium’s bond token issuance process offers a unique set of benefits to Viking Commodities Capital that would not be available through traditional fundraising methods. These include:
- Faster process and lower cost: launching a bond token sale on Ignium can be executed in a matter of days and at a fraction of the cost versus a bond offering through a traditional capital markets infrastructure.
- Operational resilience and zero intermediaries: the process of issuing a digital bond through Ignium’s platform is simple with less red tape, less paperwork and does not require a complex network of intermediaries as the conventional capital market infrastructure. Hence a bond issue through Ignium’s platform entails fewer risks and lower costs.
- Safety and security: Bond tokens on Ignium’s platform are issued and traded through a blockchain-based platform that is provided by Guardtime www.guardtime.com, the world’s leading blockchain platform. Guardtime’s platform is used by a number of governments and strategic enterprises across the globe. Through Guardtime, records of token transactions on Ignium’s platform are kept in an immutable ledger.
Viking Capital Commodities executive Artjom Vakulenko said that “we are delighted to see investor appetite for this product issued by using innovative technology and means. The instrument represents a good opportunity for investors to be exposed to the commodity sector through short term debt instrument, especially in the context of rising commodity prices and falling interest rates.”
Yevgen Morgunov, Member of the Board of Viking Trading, said that “using capital markets for funding our trading activities is part of our strategy. Hence this transaction acts as a natural next step. We were positively surprised how seamless and simple the process of securities issuance and onboarding of investors across borders was.”
Ignium co-founder & CEO Reimo Hammerberg said of the launch that “this is a great example of how new technology is being employed for trade finance and capital market transaction by established participants of their craft. This further proves the relevance of the use case of digital assets for mainstream finance. We are thrilled to be able to help.”
About Viking Commodities Capital
Viking Commodities Capital OÜ, the issuer of the bond token and the arranger of the bond issuance on Ignium, is an SPV established as a joint-venture between Viking Trading OÜ and Zenith Family Office OÜ. The main activity of VCC is to provide commodity trade finance solutions through short-term high yield asset-backed, fixed-income global products.
About Viking Trading
Viking Trading OÜ, established in 2015 in Estonia, is the leading international grain and vegetable oil trading company, sourcing the products from the Black Sea region and distributing them to the markets of the Mediterranean region, North-Africa, Middle-East, Far-East and Americas. The company is also actively running a large poultry farming and manufacturing business as well as soybean processing and trade.
About Zenith Family Office
Zenith Family Office OÜ is a multi-family office established in 2011 in Estonia and dedicated to investments, legacy and personal needs of wealthy individuals, families and corporates owned by them across the globe: from Russia, Ukraine and Belarus to Western Europe, Turkey, MENA region and India.
About Ignium
Ignium’s blockchain-based security token infrastructure enables a direct, affordable, and reliable connection between companies and investors globally. Through Ignium, companies can issue and sell digital assets to investors around the globe with no intermediaries. Ignium also offers investors an “e-commerce-like” secondary market, and a state-of-the-art capable solution that is constantly updated in real-time. All of Ignium’s services run on blockchain. Founded in Estonia by Reimo Hammerberg and Kevin Murcko in 2019, Ignium is currently seeking companies that are interested in embracing an innovative, accessible, and affordable fundraising model.
