Case study

NatWest pioneers a new bond execution process with LSEG’s DCM Flow platform

NatWest executes JPY 1 billion 5-year fixed rate note via DCM Flow

20 Mar 2023 . 3 min read

The NatWest deal team worked closely with DCM Flow’s technology provider, Nivaura, and the LSEG (platform partner) to fully understand how DCM Flow can help simplify the transaction execution process.

As a first step – with the support of NatWest Markets’ treasury, legal and Capital Markets teams – NatWest Markets executed a pilot Private Placement over the platform, printing a JPY 1 billion 5-year fixed rate note by exclusively using DCM Flow to originate the deal, negotiate with investors and sign all legal documentation via the platform.

Streamlining debt capital markets issuance

To help simplify the debt capital markets transaction execution process, London Stock Exchange Group (LSEG) has launched DCM Flow, an end-to-end automation tool using General Legal Mark-up Language (GLML). It helps issuers, dealers, legal advisers and other stakeholders to originate, negotiate and close deals more efficiently by cutting complexity and costs.

NatWest and London Stock Exchange share vision for digital capital markets

Chris Agathangelou, Head of Digital Capital Markets and Flow Credit at NatWest, said: “As we look at the future of the corporate banking sector, digitalisation and blockchain are both going to provide a path to a more transparent, frictionless market. Our customers are focused on this development, and our job is to support them on their journey.”

Darko Hajdukovic, Group Head of Platforms and Product, Primary Markets at London Stock Exchange, commented: “We are delighted that NatWest has utilised DCM Flow to execute a JPY1bn 5-year fixed rate note for NatWest Markets. This transaction clearly demonstrates that NatWest and London Stock Exchange share a vision for creating value for clients through digitisation of capital markets.”

Scott Forrest, Head of Treasury DCM at NatWest, said: “As a regular issuer, we are always looking for ways to make the issuance process across NatWest Group as efficient as possible, and DCM Flow helps us to do exactly that by more easily linking the issuer, dealer and their respective counsels.”

Clare Goold, Head of Syndicate Transaction & Execution Management at NatWest, added: “This debut transaction on DCM Flow marks an important step on our journey towards building an automated and digital Capital Markets business. For us, the accuracy, consistency and speed are the key benefits of DCM Flow. Looking ahead, it will also link well into our DLT Blockchain programme, and we are looking forward to further collaborating with the London Stock Exchange.”

This article has been prepared for information purposes only, does not constitute an analysis of all potentially material issues and is subject to change at any time without prior notice. NatWest Markets does not undertake to update you of such changes. It is indicative only and is not binding. Other than as indicated, this article has been prepared on the basis of publicly available information believed to be reliable but no representation, warranty, undertaking or assurance of any kind, express or implied, is made as to the adequacy, accuracy, completeness or reasonableness of the information contained in this article, nor does NatWest Markets accept any obligation to any recipient to update or correct any information contained herein. Views expressed herein are not intended to be and should not be viewed as advice or as a personal recommendation. The views expressed herein may not be objective or independent of the interests of the authors or other NatWest Markets trading desks, who may be active participants in the markets, investments or strategies referred to in this article. NatWest Markets will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser; nor does NatWest Markets owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on NatWest Markets for investment advice or recommendations of any sort. You should make your own independent evaluation of the relevance and adequacy of the information contained in this article and any issues that are of concern to you.

This article does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any investment, nor does it constitute an offer to provide any products or services that are capable of acceptance to form a contract. NatWest Markets and each of its respective affiliates accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.

NatWest Markets Plc. Incorporated and registered in Scotland No. 90312 with limited liability. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. NatWest Markets N.V. is incorporated with limited liability in The Netherlands, authorised and supervised by De Nederlandsche Bank, the European Central Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, The Netherlands, and is registered in the Commercial Register under number 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, The Netherlands. NatWest Markets Plc is, in certain jurisdictions, an authorised agent of NatWest Markets N.V. and NatWest Markets N.V. is, in certain jurisdictions, an authorised agent of NatWest Markets Plc. NatWest Markets Securities Japan Limited [Kanto Financial Bureau (Kin-sho) No. 202] is authorised and regulated by the Japan Financial Services Agency. Securities business in the United States is conducted through NatWest Markets Securities Inc., a FINRA registered broker-dealer (http://www.finra.org), a SIPC member (www.sipc.org) and a wholly owned indirect subsidiary of NatWest Markets Plc.

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