Raising of Funds through NCDs on Private Placement Basis
Awaiting price reaction for this filing.
HUDCO, a Navratna government PSU, has approved raising Rs. 2,190 crore through unsecured, taxable, redeemable, non-convertible, non-cumulative debentures on a private placement basis. The issue has a base size of Rs. 500 crore with a green shoe option of Rs. 1,680 crore, face value of Rs. 1,00,000 per bond, and a 5-year tenure redeemable at par. The coupon rate is 6.90% per annum with annual interest payments starting May 2026. The bonds will be listed on BSE and the Bond Allotment Committee approved the issuance on May 8, 2025.
The fundraising strengthens HUDCO's lending capacity for housing and urban infrastructure projects. The 6.90% coupon is a moderate borrowing cost for a government-backed entity, and the unsecured nature is typical for such large established PSUs. No immediate price-moving signal for shareholders as this is standard debt raising.