Housing and Urban Development Corporation Ltd (HUDCO), a Navratna Central Public Sector Enterprise (CPSE), has approved the issuance of Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative Debentures (NCDs) worth ₹2,000 crore. This fundraising initiative will be conducted through a private placement under the Series-G 2024 issuance.
Key Highlights of the NCD Issue:
| Parameter | Details |
|---|---|
| Base Issue Size | ₹500 crore |
| Green Shoe Option | ₹1,500 crore |
| Total Issue Size | ₹2,000 crore |
| Tenure | 10 years (Maturity Date: March 27, 2035) |
| Coupon Rate | 7.19% per annum |
| Interest Payment | Annually, starting March 27, 2026 |
| Redemption | At par on March 27, 2035 |
| Listing | Proposed on BSE |
| Security | Unsecured |
| Default History | No delays or defaults reported |
Purpose of the Fundraising
HUDCO plans to utilize the proceeds from this NCD issuance to strengthen its lending operations in the housing and infrastructure sectors. With India’s growing urbanization and increasing demand for affordable housing and infrastructure development, this capital infusion will support long-term projects that align with the nation’s development goals.
The approval of this NCD issue reinforces HUDCO’s commitment to financial prudence and strategic expansion. Investors looking for stable returns may find this offering attractive, given the company's strong track record and the structured repayment mechanism.
This move comes at a time when the Indian financial markets are witnessing increased demand for debt instruments, particularly from government-backed entities. With its sound financials and a clear roadmap for growth, HUDCO continues to position itself as a key player in India’s urban development landscape.
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Disclaimer: This article is for informational purposes only. Investors should do their own research and seek advice from financial experts before making investment decisions.