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.