3 days ago
REC gets CBDT nod to issue ₹5,000 crore Zero Coupon Bonds
New Delhi:
REC Limited
, a
Maharatna Central Public Sector Enterprise
under the Ministry of Power, has received approval from the Central Board of Direct Taxes (CBDT) to issue
Zero Coupon Bonds
(ZCBs) aggregating ₹5,000 crore. The bonds will have a tenure of ten years and six months.
According to a notification dated May 30, 2025, issued by the Department of Revenue, Ministry of Finance, the approval allows REC to issue five lakh ZCBs. These instruments will be issued at a deep discount and redeemed at face value upon maturity, offering
tax advantages
to investors under the Income-tax Act, 1961.
In FY 2024–25, REC had issued CBDT-notified ZCBs worth ₹5,000 crore, which received subscription nearly seven times the offered amount. That issue was priced at a yield of 6.25 per cent, approximately 100 basis points lower than the prevailing
market rates
.
"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," the company stated.
REC, which functions as a leading non-banking financial company (NBFC), said it remains committed to exploring innovative financial instruments for efficient
fund mobilisation
to support India's growing
energy infrastructure
.
