HUDCO to raise up to ₹2,500 crore via NCD issue on December 12

State-owned Housing and Urban Development Corporation Ltd (HUDCO) on Tuesday, December 9, said its Bond Allotment Committee is scheduled to meet on December 12 to approve the issue and allotment of unsecured,

taxable, redeemable, non-convertible and non-cumulative debentures of face value ₹1,00,000 each, aggregating up to ₹2,500 crore on a private placement basis.

The proposal follows the approval granted by the board of directors on April 4, 2025, to raise funds up to ₹65,000 crore through the issue of bonds and debentures during FY2025-26. The proposed Series-E 2025 NCDs will have a tenure of seven years, with the redemption date fixed as December 12, 2032.

The debentures are unsecured in nature and constitute senior debt. The mode of issue will be private placement through the online bidding process on the BSE EBP platform. The issue size comprises a base size of ₹500 crore with a green shoe option to retain oversubscription of up to ₹2,000 crore, taking the total issue size to ₹2,500 crore.

Also Read: HUDCO eyes ₹1.5 lakh crore loan book, zero NPAs by FY26

The proposed NCDs carry a fixed coupon rate of 1% payable annually. The first interest payment date is December 12, 2026, with subsequent payments due annually up to maturity. The allotment is proposed to be made with a deemed date of allotment of December 12. The issue and bid opening and closing date are December 10 with the pay-in date being December 12. The proposed debentures will be issued at par at ₹1,00,000 per debenture.

The funds raised will be used to augment HUDCO’s long-term resources for business and operational requirements, including lending activities, repayment or refinancing of existing debt, and other purposes in the ordinary course of business. The NCDs are proposed to be listed on the BSE.

The company said the debentures will be issued in dematerialised form and traded in demat mode only. In case of default in payment of interest or redemption amounts, a default interest of 2% per annum over the coupon rate will be payable.

Also Read: Hudco in talks with global development institutions to raise $1 bn by Mar: CMD

Shares of HUDCO ended at ₹213.70, up by ₹0.91, or 0.43%, on the BSE today, December 9.