As a borrower, KfW tests the DEBTVISION electronic LBBW marketplace for a Schuldschein. The loan was taken over by Wüstenrot Bausparkasse as the donor.
DEBTVISION is a digital financing platform jointly developed by LBBW and Börse Stuttgart. Here, companies seeking capital, financial institutions, and public-sector institutions – all with good to very good credit ratings – meet established, financially strong investors. The transaction process in this front-end system is fully electronic, from marketing to subscription. The platform was launched at the beginning of June with a marketplace for Schuldschein loans.
„We like to test this new approach because we want to make our refinancing more efficient with the help of modern technology and even more attractive for investors. We are therefore following this development with great attention,”, says Frank Czichowski, Head of Financial Markets and Treasurer at KfW. “The first transaction went smoothly and shows the scope for efficiency gains by streamlining the processes for marketing Schuldschein. On DEBTVISION, the borrower can manage the complete marketing himself via the intuitive user interface of the web-based platform. The borrower always retains full transparency.
Investors also benefit from the digitalization of the Schuldschein process. They have direct access to high-quality Schuldschein transactions via the marketplace and can subscribe electronically. “We are open to innovation and would like to explore these possibilities, because we can also imagine carrying out capital market transactions using modern technologies such as blockchain,” explains Jürgen Steffan, CFO of Wüstenrot Bausparkasse, which takes over the KfW promissory note directly.
Following the launch of DEBTVISION with the marketing of corporate Schuldschein, KfW is the first bank to use the platform as a borrower. “The requirements for Schuldschein transactions for financials differ from those for corporate Schuldscheine. That’s why we gained valuable insights with this test, also with a view to the development of further marketplaces for other financing products,” explains Christoph Steinbrich, Managing Director of DEBTVISION.
“We have a broad customer base for Schuldscheine not only among companies, but also among banks and the public sector. Together with our placement strength and our great product competence as market leader, these are excellent prerequisites for establishing DEBTVISION on the market in the long term,” explains Dr. Christian Ricken, Board Member for Capital Markets at LBBW. “The smooth transaction via the new marketing channel is another building block in our excellent cooperation with KfW,” adds Patrick Seifert, Head of Primary Market Business at LBBW. (DSZ)