New Delhi [India], October 1 (ANI): REC Limited, a ‘Maharatna’ company under the administrative control of the Ministry of Power, has successfully raised CBDT notified Zero Coupon Bonds (ZCB) of Rs 5,000 crore at the effective yield of 6.25 per cent per annum.
REC said its 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).
Zero coupon bonds are issued at deep discount and are redeemed at face value.
Since these bonds 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 per cent per annum.
Last issuance of CBDT notified zero coupon bond of REC was done in fiscaL 2010-11. Bonds will be listed on BSE and NSE.
REC, granted Maharatna status in 2022, finances the entire range of power infrastructure sector, comprising generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage, pump storage projects, green hydrogen, and green ammonia projects.
More recently, the 1969 established company REC, also diversified into the non-power infrastructure sector comprising roads and expressways, metro rail, airports, IT communication, social and commercial infrastructure (educational institutions, hospitals), and refineries, among others. (ANI)
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