HUDCO's Major Debenture Venture: A Rs 2,190 Crore Move

HUDCO, a state-owned corporation, is set to raise up to Rs 2,190 crore through the issuance of debentures. The Bond Allotment Committee has approved these debentures which are non-convertible and redeemable, offering a 6.9% annual interest, maturing in five years.

The state-owned Housing and Urban Development Corporation Limited (HUDCO) is gearing up for a significant financial move by planning to raise up to Rs 2,190 crore. This will be achieved through the issue of non-convertible debentures, as confirmed in a recent regulatory filing.

According to the announcement, HUDCO's 'Bond Allotment Committee' has granted approval for the issuance of unsecured, taxable, redeemable, non-cumulative NCDs with a face value of Rs 1,00,000 each. These debentures will be offered on a private placement basis and are due for redemption at the end of five years, carrying an annual coupon rate of 6.9%.

As a company engaged in the financing of housing and infrastructure projects, HUDCO's new debenture issuance underscores its ongoing commitment to fueling development through strategic financial instruments.

(With inputs from agencies.)