New Delhi: Housing and Urban Development Corporation Limited (HUDCO) has announced plans to raise up to ₹1,500 crore through perpetual bonds as part of its enhanced ₹80,000 crore borrowing programme for FY 2025–26. The disclosure was made to stock exchanges in compliance with SEBI Listing Regulations.
Board Approves Enhancement of FY26 Borrowing Limit
The HUDCO Board, at its meeting held on January 29, 2026, approved an increase in the company’s annual borrowing limit from ₹65,000 crore to ₹80,000 crore. The funds will be raised through multiple instruments, including bonds and debentures.
The original borrowing limit of ₹65,000 crore had been approved in April 2025.
Bond Allotment Committee to Meet on February 13
Following the Board’s approval, HUDCO informed that its Bond Allotment Committee will meet on February 13, 2026 to consider the issue and allotment of perpetual, subordinated, listed, unsecured, taxable, rated, non-convertible debentures (NCDs) on a private placement basis.
Key Highlights of the Proposed Perpetual Bond Issue
- Issue Size: Up to ₹500 crore with a green shoe option of ₹1,000 crore (total up to ₹1,500 crore)
- Instrument Type: Perpetual, subordinated, unsecured NCDs
- Face Value: ₹1 crore per debenture
- Tenor: Perpetual
- Call Option: After 10 years (February 13, 2036), subject to RBI approval
- Coupon: Fixed rate to be discovered via BSE EBP platform
- Step-Up Clause: One-time increase of 50 basis points if the call option is not exercised
- Capital Treatment: Eligible for inclusion in Tier I and/or Tier II capital as per RBI NBFC norms
Strong Credit Ratings and Listing Plans
The proposed NCDs have received top-tier credit ratings:
- CARE Ratings: AAA (Stable)
- Acuité Ratings: AAA (Stable)
The debentures are proposed to be listed on the BSE within the prescribed timeline following allotment, in line with SEBI and RBI guidelines.
Use of Proceeds
HUDCO stated that the proceeds from the issue will be used to:
- Augment long-term financial resources
- Support regular business operations
- Strengthen the company’s regulatory capital base
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.
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