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.