REC set to raise 5 billion rupees via India's first tokenised corporate bond sale
State-run REC plans to debut blockchain-based bond issuance next week, targeting a total raise of five billion rupees ($52.92 million) with the Reserve Bank of India's digital currency for settlement.
Five merchant bankers confirmed on Friday that Recreational Estates Corporation (REC), a state-owned entity, will launch its first tokenised corporate bond sale next week. The issue aims to raise 5 billion rupees, which equals approximately $52.92 million. The bonds will mature in one year and eight months. This deal marks India's inaugural debt issuance utilizing blockchain technology for instant transaction settlement. Ownership, issuance, trading, and settlement for these securities will be recorded digitally on a distributed ledger. The Reserve Bank of India (RBI) digital currency, often referred to as the e-rupee, will be used by buyers to purchase the bonds. Participation in the sale is restricted; only investors holding active security wallets and Central Bank Digital Currency (CBDC) wallets may place bids. The primary issue size stands at 1 billion rupees. REC holds a green shoe option allowing it to retain an additional 4 billion rupees if demand exceeds expectations. The bidding process is scheduled to commence on Monday.
