By issuing Perpetual Tier I Bonds with a coupon rate of 7.87% per annum, HUDCO (Housing and Urban Development Corporation Ltd.), a Navratna CPSE under the Ministry of Housing and Urban Affairs, was able to raise 1,442 crore.
An overwhelming demand from Qualified Institutional Buyers (QIBs) and investor faith in HUDCO’s financial health and growth prospects were evident in the bonds’ issuance on an electronic bidding platform, which was oversubscribed five times.
By increasing its capital base, leverage, and capital adequacy, HUDCO will be able to build its balance sheet sustainably with the funds raised. Aligning with the government of India’s aims for sustainable urban development, this boost of Tier I capital is projected to bolster HUDCO’s long-term financial stability and facilitate increasing lending in housing and urban infrastructure.
According to CMD Sanjay Kulshrestha, market trust in HUDCO’s financial health and strategic goals was demonstrated by the considerable investor response and oversubscription.
