New Delhi: Housing and Urban Development Corporation Ltd. (HUDCO), a Navratna CPSE under the Ministry of Housing and Urban Affairs, has successfully raised ₹1,442 crore through the issuance of Perpetual Tier I Bonds at a coupon rate of 7.87% per annum.
The bonds were issued via an electronic bidding platform and received an overwhelming response from investors, with the issue being oversubscribed five times its base size.
HUDCO Perpetual Tier I Bond Issue: Robust Institutional Participation
The bond issuance was subscribed entirely by Qualified Institutional Buyers (QIBs), reflecting strong investor confidence in HUDCO’s financial fundamentals and long-term growth prospects.
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The strong oversubscription underscores the institution’s credibility among large institutional investors and highlights positive market sentiment toward HUDCO’s strategic direction.
Strengthening Capital Base and Financial Resilience
The Perpetual Tier I instruments will function as a stable and permanent source of capital, significantly strengthening HUDCO’s capital structure.
The capital infusion will:
- Enhance HUDCO’s Tier I capital base
- Improve leverage ratios
- Strengthen capital adequacy
- Support sustainable balance-sheet expansion
By augmenting Tier I capital, HUDCO aims to improve its long-term financial resilience and create additional headroom for growth.
Boost to Housing and Urban Infrastructure Lending
The funds raised through the bond issue will enable HUDCO to scale up its lending activities in:
- Affordable housing
- Urban infrastructure development
- Sustainable urban projects
The capital raising aligns with the Government of India’s vision for inclusive and sustainable urban development, reinforcing HUDCO’s role as a key financial institution in the housing and infrastructure sectors.
CMD Sanjay Kulshrestha on the Successful Issue
Commenting on the development, Shri Sanjay Kulshrestha, CMD, HUDCO, said:
“The strong investor response and significant oversubscription to our Perpetual Tier I bond issue reflects deep market confidence in HUDCO’s financial strength and strategic direction. This successful capital raise will further reinforce our leverage levels and support our long-term growth strategy in the housing and urban infrastructure sectors.”
Strategic Significance of the HUDCO Perpetual Tier I Bond Issue
The successful fundraising demonstrates:
- Strong institutional trust in HUDCO’s governance and performance
- Market appetite for high-quality public sector debt instruments
- Confidence in HUDCO’s long-term growth strategy
The fivefold oversubscription highlights the growing investor appetite for infrastructure-linked financial instruments backed by credible public sector enterprises.
About HUDCO
Housing and Urban Development Corporation Limited (HUDCO), a public sector undertaking (PSU) under the Government of India, is engaged in financing housing and urban infrastructure projects across the country. The company plays a key role in supporting affordable housing, smart cities, and urban development initiatives through long-term funding to state governments and other public sector entities.















