Raising of Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative, NCDs of face value of Rs. 100000 each (Series C 2025) on Private Placement Basis
Awaiting price reaction for this filing.
HUDCO, a government-owned housing finance Navratna CPSE, is raising up to Rs. 750 crore through unsecured non-convertible debentures (NCDs) on a private placement basis. The base issue size is Rs. 500 crore, with a green shoe option of an additional Rs. 250 crore, taking the total to Rs. 750 crore. Each NCD has a face value of Rs. 1,00,000 and carries an annual coupon (interest rate) of 6.52%, paid yearly on June 6 each year up to 2028. The bonds are unsecured, redeemable at par at maturity, and will be listed on BSE. The decision was approved by the Bond Allotment Committee on June 6, 2025.
This is a straightforward debt-raising move and is not dilutive to existing shareholders. The 6.52% coupon is in line with current market rates for high-quality PSU papers, and the successful Rs. 750 crore raise shows strong investor appetite for HUDCO bonds. The fresh capital will likely be used to expand lending for housing and urban infrastructure projects.