REC raises $53M in India's first tokenised bond sale
What's the deal? Indian state-run financier RECDealroom has a profile for this one. Try Dealroom → raised Rs 500 crore (about $53 million) through the country's first tokenised bond issuance, the company said in September. The post-IPO debt carries a 7.30% coupon and matures in one year and eight months.
The details: The issue had a base size of Rs 100 crore and a greenshoe option of Rs 400 crore. Participation was limited to entities equipped with a central bank digital currency wallet and Demat 2.0 infrastructure.
Why now? The sale is part of India's push to deepen its bond market using blockchain-based settlements. It was a joint effort by the Securities and Exchange Board of IndiaDealroom has a profile for this one. Try Dealroom → and the Reserve Bank of IndiaDealroom has a profile for this one. Try Dealroom →, which helped develop the tokenisation process.
What's the endgame? Tokenisation converts a corporate bond into digital tokens representing fractional ownership, cutting reliance on paper certificates and intermediaries. Experts said this could improve liquidity, reduce transaction costs, and enable faster settlements.
The signal: REC's issuance proved both operational feasibility and investor appetite, and more issuers are likely to follow. "For now, the initiative remains confined to an institutional pilot, but over time it is likely to be extended to retail investors," said Mohit Gupta, co-founder of Equirize SecuritiesDealroom has a profile for this one. Try Dealroom →.
Read more: financialexpress.com
