15 hrs ago
REC raises Rs 500 crore through India’s first tokenised bond
REC sold bonds in a digital token format instead of using only traditional paperwork.
The company raised Rs 500 crore through what the reports describe as the country’s first tokenised bond issue.
The bonds pay 7.30% interest and are due in May 2028.
One report describes the maturity as one year and eight months.
Around 20 investors, including banks, mutual funds and companies, reportedly bought the bonds.
Investors used the Reserve Bank of India’s digital currency for the transaction.
Blockchain-based tokens may make bond settlements faster and reduce the need for several intermediaries.
For now, the pilot is mainly open to institutions, although wider participation could be considered later.
REC raised Rs 500 crore through India’s first tokenised bond issuance, according to the reports.
The bonds carry a 7.30% coupon and were reported as maturing in May 2028, or one year and eight months after issuance.
The issue comprised a Rs 100 crore base size and a Rs 400 crore greenshoe option.
About 20 investors, including banks, mutual funds and corporations, reportedly participated using the Reserve Bank of India’s digital currency.
The pilot is intended to test blockchain-based issuance and settlement, with participation currently limited to institutions with eligible digital wallets and infrastructure.
- Who
- REC, with participation reportedly from banks, mutual funds and corporations; the initiative involves the Securitisation and Exchange Board of India and the Reserve Bank of India.
- What
- A Rs 500 crore issuance of tokenised bonds using blockchain-based processes and the Reserve Bank of India’s digital currency.
- Where
- India, within an institutional bond-market pilot.
- When
- The issuance took place on Monday; one report was published September 8, 2026. The bonds were reported as maturing in May 2028.
- Why
- To test tokenised issuance, trading and settlement and potentially improve bond-market liquidity, transparency, transaction costs and settlement speed.
Key facts
- Issuer
- REC Ltd., a state-run power financier
- Amount raised
- Rs 500 crore
- Coupon
- 7.30%
- Maturity
- May 2028; another report describes the term as one year and eight months
- Issue structure
- Rs 100 crore base issue plus a Rs 400 crore greenshoe option
- Reported participation
- About 20 investors, including banks, mutual funds and corporations
- Settlement method
- Investors used the Reserve Bank of India’s digital currency
- Current eligibility
- Institutions with a central bank digital currency wallet and Demat 2.0 infrastructure
Quotes
Mohit Gupta
Co-founder of Equirize Securities
“This pilot represents the industry’s first credible test of tokenised bonds. REC’s successful issuance was a strong start, and it paves the way for more such issuances. For now, the initiative remains confined to an institutional pilot, but over time it is likely to be extended to retail investors.”
financialexpress.com
Sources
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