https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

REC Ltd Gets CBDT Nod to Issue Rs 5,000 Crore Zero Coupon Bonds with 10.5-Year Tenure After Robust Market Response

Maharatna PSU Launches New Tenure Bonds with Attractive Tax Benefits
Indian Masterminds Stories

New Delhi: REC Limited, a Maharatna Central Public Sector Enterprise and a leading Non-Banking Financial Company (NBFC) under the Ministry of Power, has secured approval from the Central Board of Direct Taxes (CBDT), Ministry of Finance, for the issuance of ₹5,000 crore Zero Coupon Bonds (ZCBs).

The approval, granted under Notification No. 52/2025 dated 30th May 2025, authorizes REC to issue five lakh Zero Coupon Bonds with a tenure of 10 years and 6 months, aggregating to a total issuance size of ₹5,000 crore.

What Are Zero Coupon Bonds?
These ZCBs are issued at a deep discount to face value and redeemed at par on maturity, offering significant tax advantages to investors under the Income-tax Act, 1961. The bonds do not pay periodic interest but instead provide returns through capital appreciation at maturity.

Read Also: REC Ltd and BHEL Form Joint Venture for Renewable Energy and Infrastructure Projects

Success of Previous Issuance Sets Benchmark
REC had earlier issued a similar tranche of Zero Coupon Bonds in the FY 2024–25, which saw a phenomenal market response. The ₹5,000 crore issuance received subscriptions nearly seven times the offer size, underscoring investor confidence in REC’s creditworthiness.

The bonds were issued at a yield of 6.25%, which was about 100 basis points lower than prevailing market rates, establishing a new benchmark for such debt instruments in the market.

Read Also: REC Ltd to Raise Rs 1.7 Lakh Crore in FY 2025-26 via Bonds and Loans

Strategic Importance and Future Plans
The success of the previous issue enabled REC to tap into new investor segments and diversify its funding sources at competitive rates. This latest issuance will further strengthen REC’s ability to mobilize funds efficiently to support India’s expanding energy infrastructure.

A spokesperson for REC said, “We remain committed to exploring innovative financial instruments that align with our vision of powering India’s growth and infrastructure development.”

About REC
REC Limited (formerly Rural Electrification Corporation Limited) is a Maharatna Central Public Sector Undertaking (CPSU) under the Ministry of Power, Government of India. Established in 1969, REC is a leading non-banking financial company (NBFC), playing a pivotal role in financing and promoting power sector development across India.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Hindustan Shipyard Limited HSL
PESB Declines to Recommend CMD for Hindustan Shipyard; Ministry May Extend Current Chief’s Tenure
IAS Ajitabh Sharma
“80% of Time Spent on Non-Core Tasks”: Rajasthan Principal Secretary Ajitabh Sharma Questions IAS Work Culture, Calls for Reform
Nitin Gadkari
India to Become Net Energy Exporter in 6-7 Years, Highlights Hydrogen and Biofuels: Union Minister Nitin Gadkari
Bank of India - BOI
Bank of India Plans to Raise Rs 20,000 Crore via Infrastructure Bonds in FY 2025-26
BEML Limited
For Operational Excellence, BEML Lays Foundation of State-of-the-Art Central Warehousing Centre in Bilaspur
rec-logo
Green Energy Boost: REC Forms New Subsidiary for 3GW Ananthapuram-II REZ Transmission Project
Bhupendra Patel CM Gujarat
CM Bhupendra Patel’s Pro-People Move: Uniform House Tax of ₹200 Annually for Rural Government-Assisted Homes in Gujarat
CM Nitish Kumar
Bihar: Gaya to Become Bihar’s Largest Industrial Township Under AKIC; ₹16,524 Cr Investment Expected
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-06-25 at 5.07
Why Has the DGCA Fined Air India Rs 5 Crore Since Privatisation?
Former Diplomat Ashok Sajjanhar
Iran Is Weakest Now, Needs a Face-Saver
WhatsApp Image 2025-06-23 at 12.39
Retired Officers Lead 7-Day Mission to Revive Betwa River with 55 Check Dams | Video Interview
ADVERTISEMENT
UPSC Stories
Sanish Kumar Singh
“If you want it badly enough, you’ll find a way,” Sanish Kumar Singh AIR 8, UPSC IFS 2024 
The real interview, he says, was much more humane. “The board was conversational. The chairman opened...
Raju Wagh
When the Battlefield Became a Study Room and a Dream Took Flight
Amid IED blasts and anti-Maoist operations in Bastar, CRPF Commando Raju Wagh taught village kids, studied...
WhatsApp Image 2025-06-18 at 10.31
"I Just Wanted to Breathe Again": The Man Who Fought Death and Made It to UPSC
Struck by COVID at the peak of his UPSC prep, Devanand Telgote spent months on ECMO, unsure he'd live,...
Social Media
Shailaja Chandra
“Nanis & Dadis Have a Brain”: Former IAS Officer Shailaja Chandra Weighs in on 1970s vs 2025 Life Debate - “This Generation Has It Better”
Responding to Viral Post on Middle-Class Struggles, Ex-Bureaucrat Offers Candid Reflection on Then and...
Tigress Arrowhead
The End of an Era: A Queen Falls - Ranthambore’s Iconic Tigress Arrowhead (T-84) Passes Away at 14, Hours After Daughter’s Relocation
Ranthambore mourns the loss of one of its fiercest and most beloved tigers, Arrowhead, the granddaughter...
Screenshot 2025-06-13 194001
Wild Elephant Disrupts Riverside Picnic, Sparks Debate on Human Encroachment; IFS Parveen Kumar Shares the Video - Watch Here!
Mr. Kaswan used the viral video, which has garnered over 1.5 lakh views, to highlight the risks of human...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Hindustan Shipyard Limited HSL
PESB Declines to Recommend CMD for Hindustan Shipyard; Ministry May Extend Current Chief’s Tenure
IAS Ajitabh Sharma
“80% of Time Spent on Non-Core Tasks”: Rajasthan Principal Secretary Ajitabh Sharma Questions IAS Work Culture, Calls for Reform
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-06-25 at 5.07
Former Diplomat Ashok Sajjanhar
WhatsApp Image 2025-06-23 at 12.39
ADVERTISEMENT
ADVERTISEMENT