REC Limited, a Maharatna Central Public Sector Enterprise and a premier Non-Banking Financial Company (NBFC) under the Ministry of Power, has received approval from the Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, Government of India. As per Notification No. 52/2025 dated 30th May 2025, REC is authorised to issue Five Lakh Zero Coupon Bonds (ZCBs) with a maturity period of ten years and six months, aggregating to a total of ₹5,000 crore.
These Zero Coupon Bonds—offered at a deep discount and redeemable at face value upon maturity—provide significant tax benefits to investors under the Income-tax Act, 1961.
REC’s previous ZCB issuance in FY 2024–25 received an overwhelming response from the market, with the ₹5,000 crore issue being oversubscribed nearly seven times. The bonds were offered at a yield of 6.25%, nearly 100 basis points below prevailing market rates, setting a new benchmark in the financial sector.
The success of that issuance helped REC attract a new investor base and diversify its funding sources at competitive rates.
With this latest approval, REC continues its commitment to leveraging innovative financial instruments to efficiently mobilize funds for accelerating India’s energy infrastructure development.
