HUDCO Eyes Rs 2,000 Crore with Bonds Issue

State-owned Housing and Urban Development Corporation Ltd (HUDCO) plans to raise Rs 2,000 crore through bonds on private placement. Approved by the Bond Allotment Committee, these 10-year, non-convertible debentures carry a 7.19% coupon rate. The finance targets housing and urban development infrastructure.

State-owned Housing and Urban Development Corporation Ltd (HUDCO) plans to raise a significant Rs 2,000 crore through bonds issued on a private placement basis.

According to a regulatory filing on Thursday, HUDCO's Bond Allotment Committee has greenlit the issuance of unsecured, taxable, redeemable non-convertible debentures (NCDs) worth Rs 1,00,000 each, totalizing up to Rs 2,000 crore.

These bonds, which offer a coupon rate of 7.19%, are redeemable at the end of their 10-year term with yearly interest payments. HUDCO emphasizes that the base issue size stands at Rs 500 crore, with a greenshoe option extending the total to Rs 2,000 crore, aiming to bolster housing and urban development projects.