New Delhi: State-owned Housing and Urban Development Corporation Limited (HUDCO) has announced that its Bond Allotment Committee, in a meeting held on May 6, 2025, has approved the issuance of Non-Convertible Debentures (NCDs) under Series-B 2025. These debentures will be unsecured, taxable, redeemable, non-convertible, and non-cumulative in nature, with a face value of ₹1,00,000 each. The funds will be raised on a private placement basis for a total amount of up to ₹2,190 crore.
The issue comprises a base size of ₹500 crore and a green shoe option of ₹1,690 crore. The NCDs will carry an annual coupon rate of 6.90%, and the interest will be paid on a yearly basis. The bonds will be redeemed at par value at the end of the fifth year from the date of allotment.
The bonds will mature in five years and are scheduled to pay interest annually on May 8, 2026; May 8, 2027; May 6, 2028; May 6, 2029; and May 8, 2030. They will be listed on the Bombay Stock Exchange.
HUDCO confirmed no defaults or delays in payments and noted the bonds carry no special privileges. This capital raise aligns with HUDCO’s strategic push to finance housing and urban infrastructure under the Government of India’s ‘Viksit Bharat’ initiative.
This fund-raising initiative is expected to support HUDCO’s ongoing commitment to financing affordable housing and urban development projects across the country.
About HUDCO
HUDCO is a Central Public Sector Undertaking under the Ministry of Housing and Urban Affairs, primarily engaged in providing long-term finance for housing and urban infrastructure projects across India. In recognition of its performance and strategic importance, HUDCO was granted ‘Navratna’ status by the Government of India on April 18, 2024, providing it with greater financial and operational autonomy.
