REC set to debut tokenised corporate bond sale next week, bankers say
Tokenised bonds are securities whose ownership, issuance, trading and settlement are recorded digitally on a blockchain or distributed ledger
Next week, India is set to launch tokenised corporate bonds, according to merchant bankers. The state-owned Renewable Energy Corporation (REC) plans to raise ₹500 crore ($52.92 million) through bonds maturing in one year and eight months, three bankers revealed on Friday. This would mark India's first debt issue utilizing blockchain technology for bond transactions, positioning the nation among markets like Europe and Hong Kong embracing the technology for issuance and settlement.
Tokenised bonds are digital securities with ownership, issuance, trading, and settlement recorded on a blockchain or distributed ledger. The Reserve Bank of India's digital currency will be used for bond purchases. The base issue size is ₹100 crore, with REC retaining the option to raise an additional four billion rupees via a greenshoe clause.
Bidding for the sale will commence on Monday, with only investors possessing active security and Central Bank Digital Currency (CBDC) wallets eligible to participate. Earlier this week, Reuters reported that India's markets regulator and central bank are collaborating to promote the technology, citing sources familiar with the progress, and a pilot issue is slated for early September. All comments must be in English and in full sentences, and cannot be abusive or personal.
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