Convener News Desk
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) for issuing ₹5,000 crore worth of Zero Coupon Bonds (ZCBs).
According to a government notification (No. 52/2025 dated May 30, 2025), REC will issue five lakh ZCBs with a tenure of ten years and six months. The bonds will be issued at a deep discount and redeemed at face value upon maturity, offering tax benefits to investors under the Income-tax Act, 1961.
In a statement issued to Kashmir Convener, an official spokesperson of the company said this marks the second time REC is issuing CBDT-notified ZCBs. Its previous issuance in FY 2024–25 received a strong market response, with subscriptions reaching nearly seven times the issue size. The bonds were priced at a yield of 6.25%, around 100 basis points below prevailing market rates, setting an industry benchmark..
“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”.
Spokesperson said REC remains committed to exploring innovative instruments for efficient fund mobilisation to support India’s growing energy infrastructure needs.