newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra
PSU Mantra

REC Limited Receives CBDT Approval to Issue ₹5,000 Crore Zero Coupon Bonds

REC Limited Receives CBDT Approval to Issue ₹5,000 Crore Zero Coupon Bonds

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.

Related posts

Nissan Motor India introduces the All-New 4th Generation Premium Urban SUV X-TRAIL with World’s First Production Engine with Variable Compression Technology

Newsmantra

Shri Vivek Chandrakar Tongaonkar has taken over as the Director (Finance) of ONGC .

Newsmantra

HPCL CMD Outlines Vision for India’s Energy Transformation at Equirus Annual India Conference 2025

Newsmantra

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More