New Delhi: REC Ltd has received approval from the Central Board of Direct Taxes (CBDT), vide Notification No. 52/2025 dated May 30, 2025, for the issuance of Five Lakh Zero Coupon Bonds (ZCBs) with a tenure of ten years and six months, aggregating to a total amount of Rs 5,000 crore.
These Zero Coupon Bonds, issued at a deep discount and redeemable at face value upon maturity, offer significant tax advantages to investors under the Income-tax Act, 1961.
The previous issuance of CBDT notifed ZCB done by REC in FY2024–25 witnessed overwhelming market response, with the Rs 5,000 crore issue receiving subscription of nearly 7 times. The bonds were issued at a yield of 6.25 per cent, approximately 100 basis points lower than prevailing market rates, thereby setting a new benchmark in the industry.
The success of the previous issue enabled REC to tap into a new segment of investors while further diversifying its funding sources at competitive rates.
REC remains committed to exploring innovative instruments for efficient fund mobilisation to support India’s growing energy infrastructure needs.