Obligate Partners with Mikro Kapital for its First Bond Issuance on Base

Obligate
3 min readApr 4, 2024

Obligate announces a new digital bond issuance by Mikro Kapital, one of the foremost international groups of companies engaged in supporting small and medium-sized enterprises (SMEs) in emerging markets. This move marks the first deployment on Base, an Ethereum L2 incubated by Coinbase, for Obligate.

Mikro Kapital, established in Luxembourg in 2008, focuses on microfinance to support the real economy in emerging countries. The firm’s commitment to providing financial opportunities to small businesses aligns with this issuance, designed to facilitate growth and development. Additionally, Mikro Kapital’s business model allows a full overview on the flows, from investors to end-borrower, reducing risks, optimizing the returns and eliminating costs related to intermediaries.

“Mikro Kapital firmly believes that integrations between traditional finance and blockchain will open up new business opportunities for both. With this collaboration, investors will generate a positive impact by supporting the real economy and micro-entrepreneurship.” Vincenzo Trani, President of Mikro Kapital, stated.

ALTERNATIVE, a Mikro Kapital securitization fund, will direct the proceeds from this bond towards providing microcredits and loans to micro, small and medium-sized enterprises (MSMEs), in addition to supporting sharing economy services. This bridges the gap between investors and end borrowers and minimizes costs and risks associated with intermediaries, fostering local economic growth.

“The issuance by Mikro Kapital, using Obligate and the BASE network exemplifies the scaling of our platform and sets a precedent for how we envision future collaborations and the expansion of our services”, said Tobias Wohlfarth, Head of Origination at Obligate. “Bringing this issuance process on-chain allows us to more efficiently connect capital providers with borrowers, while also cutting out extra costs of middlemen, helping local economies grow”, he adds.

Obligate’s core functionality allows companies to issue on-chain bonds and debt securities, obtaining funding from investors. Initially introduced on Polygon and now expanding its capabilities by enabling the first transaction in the Base network.

The Microfinance industry, as the youngest and most appealing segment of the new sectors of finance, is experiencing worldwide growth at an annual rate of 15–20%. In this sector, micro-credit — or lending to MSMEs — is key. It empowers people and companies to realize their dreams, accomplish their mission, and elevate their communities’ welfare through responsible financial services, thereby contributing directly to the “real economy”.

Our Commitment

With the Mikro Kapital partnership and our first bond issuance on Base, we underline our aim to transform the financial sector. At Obligate, our vision is a financial market that’s accessible, truly efficient and transparent for everyone, ensuring fair transactions across the board. This initiative is a step forward in our mission to streamline capital flow, enabling growth and opportunity globally.

About Mikro Kapital

Founded in 2008, Mikro Kapital is specialized in impact finance and microfinance. Mikro Kapital, primarily operating through its Luxembourg securitisation funds, invests in a portfolio of companies and Microfinance Institutions (MFIs), providing financing services to small businesses and individual entrepreneurs in emerging countries across the EMEA and APAC regions.

The securitisation funds provide investment opportunities to professional investors through the issuance of debt securities (total transaction volume of over 1 billion euros as of September 30, 2023). Mikro Kapital is a member of the European Microfinance Network, a signatory to OPIM (Operating Principles for Impact Management), and has partnerships with the European Bank for Reconstruction and Development (EBRD), LuxFLAG, Global Impact Investing Network (GIIN), the Italian National Agency for Microcredit (ENM), as well as collaborations with major international investors such as the European Investment Fund (EIF).

About Obligate

Standing at the forefront of institutional adoption in on-chain capital markets, Obligate is providing a secure, transparent, and regulatory compliant platform for the issuance, trading, and lifecycle management of debt instruments natively issued on the blockchain. The platform’s unique architecture caters to the complex needs of institutional investors whilst lowering the barriers of entry for issuers by providing efficient access to multilateral financing. Featuring their proprietary eNotes®, ledger-based securities based on the most advanced DLT-legislation, a comprehensive dispute resolution framework, and global enforceability of the debt securities, Obligate demonstrates its commitment to meeting institutional standards. Obligate AG is a member of VQF, a Swiss FINMA regulated AML SRO, and a financial intermediary.

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Obligate

Obligate is an investment platform that enables investors to explore and invest in on-chain bonds in a regulated environment.