REC Raises CBDT Notified Zero Coupon Bonds of Rs 5000 crore

Gurgaon : REC Limited has successfully raised CBDT notified Zero Coupon Bonds (ZCB) of Rs 5,000 crore at the effective yield of 6.25 % p.a.  

REC bonds received tremendous response from the market as the bond was oversubscribed 7 times over the issue size of Rs. 5,000 Crore .

The bond issuance was rated AAA by all the four Credit Rating Agencies (CARE, CRISIL, ICAR, IRRPL).

ZCB are issued at deep discount and are redeemed at face value. Since these ZCBs are CBDT notified, investors are benefitted in the form of lower taxation as redemption of ZCB on maturity is treated as long term capital gain and is accordingly taxed at much lower rate of 12.5% p.a.

Last issuance of CBDT notified ZCB of REC was done in FY 2010-11.

Net Pay-in of Rs. 2,712.50 crore against the bond issuance shall happen on 03rd September 2024.

Bonds will be listed on BSE and NSE.

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 ₹ 5.30 lakh crore and Net Worth at Rs. ₹ 72,351 crore as on 30^th June, 2024.