REC Limited has conducted India’s first pilot issue of tokenised corporate bonds under the Securities and Exchange Board of India Regulatory Sandbox Framework.
The size of the pilot issue was around 5 billion, entailing a base size of Rs 1 billion and a green shoe option of Rs 4 billion. The bidding was undertaken through the electronic debt bidding platform of the National Stock Exchange of India Limited (NSE). The issue received bids worth around Rs 7.96 billion, resulting in an oversubscription of nearly eight times. Following the bidding process, REC accepted Rs 5 billion at an annual coupon rate of 7.30 per cent for a tenor of one year and nine months. The tokenised issuance enabled same-day pay-in, allotment and listing of the bonds. The bonds are listed on both NSE and Bombay Stock Exchange Limited.