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.