Larsen & Toubro Limited has become the first private sector corporate in India to raise ₹500 crore through tokenized bonds with a 3-year tenure. The issuance was conducted under the Securities and Exchange Board of India's (SEBI) newly introduced blockchain-based tokenization framework.
Key Transaction Details
- Issue Size: ₹500 crore
- Tenure: 3 years
- Technology: Distributed Ledger Technology (DLT) based infrastructure
- Settlement Method: Central Bank Digital Currency (CBDC) wallet
- Sector First: First private sector corporate issuance of tokenized bonds in India
Regulatory Framework
The bond issuance utilizes SEBI's pioneering initiative that enables tokenization of corporate bonds using Distributed Ledger Technology. This framework represents a significant step towards digital transformation of India's corporate bond market, aimed at enhancing transparency, efficiency, and digitalization while facilitating wider participation and potentially improving liquidity.
Technological Integration
The integration of tokenized securities with CBDC-based settlement infrastructure represents an important advancement towards more seamless, secure, and efficient digital capital-market transactions. The use of DLT is expected to enable a more streamlined and transparent framework for recording and managing bond transactions.
Strategic Significance
This transaction represents a milestone in L&T's continued adoption of technology-led solutions in its capital-raising and treasury operations, supporting the evolution of India's corporate debt market.
Company Background
Larsen & Toubro is a USD 32 billion Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing, Products and Services, operating across diverse domains and multiple geographies.