REC gets CBDT nod to issue Rs 50 billion zero coupon bonds

REC Limited has received approval from the Central Board of Direct Taxes (CBDT), Ministry of Finance, to issue zero coupon bonds worth Rs 50 billion.

These bonds will have a tenure of ten years and six months. They will be issued at a deep discount and redeemed at face value upon maturity. The structure offers tax benefits to investors under the Income Tax Act, 1961.

REC had previously launched a similar bond issuance in FY 2024–25, also worth Rs 50 billion. That issue received strong demand, with subscriptions reaching nearly seven times the original size. The bonds were offered at a yield of 6.25 percent, about 100 basis points below prevailing market rates.

The successful outcome of the earlier issue has helped REC attract a broader investor base while diversifying its funding through competitive and tax-efficient instruments.