New Delhi: Housing and Urban Development Corporation Ltd. (HUDCO), a Navratna CPSE and NBFC–IFC, has successfully raised ₹1,905 crore through a 7-year bond issuance at a competitive 6.98% coupon, even as debt markets faced heightened volatility.
The issuance came amid rising corporate bond yields, despite expectations of softer rates following the RBI’s 25 bps repo rate cut and ₹1 lakh crore OMO purchases. Two PSU issuers had recently cancelled planned issuances after receiving quotes that were not aligned with expectations. In the secondary market, 7-year PSU papers were trading at 7.08–7.10%, reflecting the prevailing market strain.
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HUDCO’s success—raising funds nearly 10 basis points below secondary market levels—demonstrates strong investor confidence and the company’s disciplined liability management.
Commenting on the issuance, Mr. Sanjay Kulshrestha, Chairman, HUDCO, said:
“HUDCO is committed to optimizing its cost with an objective to ensure creation of bankable, sustainable and resilient infrastructure, thereby supplementing the efforts of the Government of India for Viksit Bharat @ 2047.”
The successful fund-raising reinforces HUDCO’s reputation as a creditworthy borrower and underscores its pivotal role in supporting India’s urban development and infrastructure ambitions.
About HUDCO
HUDCO, a premier public-sector enterprise under the Ministry of Housing and Urban Affairs, has been a key driver of India’s urban development initiatives. It provides financial and technical support for housing, urban infrastructure, and municipal projects across the country. Through collaborations like this MoU with NIUA, HUDCO continues to play a leading role in promoting sustainable urban growth, innovative solutions, and capacity-building initiatives for India’s cities
