REC Limited Receives CBDT Approval to Issue ₹5,000 Crore Zero Coupon Bonds
Dated 2025-06-04

REC Limited, a Maharatna Central Public Sector Enterprise and a leading 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, vide Notification No. 52/2025 dated 30th May, 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 ₹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 FY 2024–25 witnessed overwhelming market response, with the ₹5,000 crore issue receiving subscription of nearly 7 times. The bonds were issued at a yield of 6.25%, 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.

About REC LIMITED

REC is a 'Maharatna' company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC). REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, Green Ammonia projects etc. More recently REC Limited has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.

REC Limited provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country. REC Limited continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS). REC has also been given the responsibility of PM Surya Ghar Muft Bijli Yojna from Central Government. The Loan Book of REC stands at ₹5.66 lakh crore, and Net Worth at ₹77,638 crores as on March 31, 2025.