First “tokenization” of a bond designed for a solar project: De Gaulle Fleurance and KiloWattsol advised BNP Paribas

The BNP Paribas Group headed a global and transversal project of “tokenization” and distribution of a bond intended to finance a photovoltaic project sponsored by EDF ENR.

Blockchain enables bonds issued for renewable energy projects to be structured as tokens, thereby offering a number of advantages: increased liquidity, dynamic pooling opportunities between investors and greater transparency of the data, particularly in order to include ESG data.

From a legal and technical standpoint, this tokenization is also an opportunity to develop new models for streamlining the auditing phases with a prior detailed analysis of all the risks involved in a project.

The BNP PARIBAS teams involved De Gaulle Fleurance (with partner Sylvie Perrin, senior counsel Sophie Weill, and Fatima Naili associate) and KiloWattSol (technical aspects dealt by Xavier Daval and Laurent Gaubert) who were involved in defining the audits’ methodology and the needs and expectations of project funders.

The implementation of this new process is intended to limit the time spent conducting audits on small projects, to target the essential points analyzed in the context of their financing, and thus to limit the associated costs.

The team worked on a solar roof project developed by EDF ENR.

“We are proud to have contributed to these reflections for an awaited innovation within the sector,”

explains Sylvie Perrin, partner at De Gaulle Fleurance.

“This tokenization will facilitate the financing and development of small-scale renewable energy, based upon its use to streamline processes and increase transparency throughout the value chain. This is the type of innovative project that De Gaulle Fleurance wants to be associated with to further the financing and investment in renewable energy.”

“We are very delighted by the collective work carried out within the framework of this first photovoltaic asset tokenization project initiated by BNP PARIBAS,”

said Xavier Daval, President of KiloWattSol.

“This is a very good example of cooperation between technology and finance serving the energy transition.”