India's REC set to debut tokenised corporate bond sale next week, bankers say
MUMBAI: India will launch tokenized corporate bonds next week, as state-run REC aims to raise 5 billion rupees ($52.92 million) through bonds maturing in one year and eight months, three merchant bankers said on Friday. This would be India’s first debt issue to use blockchain technology to enable instant settlement of bond transactions, placing the country alongside markets such as Europe and…
Mumbai will witness the debut of tokenized corporate bonds next week, according to bankers familiar with the matter. State-run REC, India's leading renewable energy corporation, plans to raise 5 billion rupees through bonds that will mature in 15 months, according to three merchant bankers speaking on Friday. This marks India's first debt issuance utilizing blockchain technology for settlement, joining markets such as Europe and Hong Kong in adopting the innovative approach.
Tokenized bonds are securities with ownership, issuance, trading, and settlement recorded digitally on a blockchain or distributed ledger. The Reserve Bank of India's digital currency, known as the Central Bank Digital Currency (CBDC), will be employed to purchase these bonds. The base issue size stands at one billion rupees, with REC retaining an additional four billion rupees through a greenshoe option.
Bidding for the sale is scheduled to commence on Monday, and only investors with active security and CBDC wallets will be permitted to place bids for the issue.
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