New Delhi, June 12 -- Issuer interest in zero-coupon bonds (ZCBs) faces a potential setback after state-run Power Finance Corporation (PFC) pulled its planned offering for a second time in a row, reportedly due to a mismatch in yield expectations, experts said.

Following approval from the Central Board of Direct Taxes (CBDT) on 11 March 2025, PFC decided to launch its 10-year zero-coupon bonds, according to an official notification, with a base issue size of Rs.500 crore and a green shoe option to raise additional Rs.1,500 crore in the event of high demand from investors.

Business Standard reported on Monday, citing sources, that PFC has withdrawn its zero-coupon bond issuance for the second time in just over a month, as investors deman...