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REC Limited has successfully raised ₹5,000 crore through CBDT-notified Zero Coupon Bonds (ZCB) at an effective yield of 6.25% per annum. The bond issuance saw overwhelming market demand, being oversubscribed seven times the initial offer size.

The ZCBs, rated AAA by leading credit rating agencies (CARE, CRISIL, ICAR, IRRPL), are issued at a deep discount and redeemed at face value. As CBDT-notified bonds, investors benefit from lower taxation, with redemptions treated as long-term capital gains taxed at just 12.5% per annum.

This marks the first such issuance by REC since FY 2010-11, with a net pay-in of ₹2,712.50 crore scheduled for 3rd September 2024. The bonds will be listed on both BSE and NSE.

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