HUDCO raises Rs 1,442 crore via Perpetual Tier I bonds; issue oversubscribed 5 times

New Delhi: Housing and Urban Development Corporation Ltd. (HUDCO), a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Housing and Urban Affairs, has successfully raised Rs 1,442 crore through the issuance of Perpetual Tier I Bonds at a coupon rate of 7.87 percent per annum.

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The bonds were issued through an electronic bidding platform and witnessed strong investor interest, with the issue being oversubscribed five times its base size. The offering was fully subscribed by Qualified Institutional Buyers (QIBs), underscoring robust investor confidence in HUDCO’s financial strength, credibility and growth prospects.

The Perpetual Tier I instruments will serve as a stable and permanent source of capital, enhancing HUDCO’s Tier I capital base and improving its leverage and capital adequacy ratios. The capital augmentation is expected to strengthen the corporation’s long-term financial resilience and provide additional headroom to support sustainable balance-sheet growth.

The funds raised will enable HUDCO to further scale up its lending activities in the housing and urban infrastructure sectors, in line with the Government of India’s vision for inclusive and sustainable urban development.

Commenting on the development, HUDCO Chairman and Managing Director (CMD) Sanjay Kulshrestha 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.”

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