HUDCO raises Rs 1,905 crore via 7-Year bonds despite volatile debt market

New Delhi: Housing and Urban Development Corporation Ltd. (HUDCO), a Navratna Central Public Sector Enterprise and NBFC–IFC, has successfully mobilised Rs 1,905 crore through a 7-year bond issuance, defying heightened volatility in the Indian debt markets. The bonds were priced at a competitive coupon rate of 6.98 percent during the electronic bidding held on December 10.

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The fundraise stands out as it comes during a week marked by sharp yield movements and risk aversion across the corporate bond market. Despite the Reserve Bank of India’s recent accommodative steps, including a 25 bps Repo Rate cut and plans for Rs 1 lakh crore worth of Open Market Operations (OMOs), market yields unexpectedly hardened amid global uncertainties.

Reflecting the stressed sentiment, two PSU issuers were compelled to cancel their bond issuances on December 9 after receiving unattractive pricing levels. On December 10, secondary market trades for comparable 7-year PSU bonds were recorded at significantly higher yields of 7.08–7.10 percent.

Against this backdrop, HUDCO’s ability to secure funds nearly 10 basis points below prevailing secondary market rates highlights its strong credit standing, robust investor confidence, and prudent liability management strategy.

Commenting on the achievement, HUDCO Chairman Sanjay Kulshrestha said the organisation remains focused on cost optimisation to support the nation’s infrastructure ambitions.

“HUDCO is committed to optimising 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,” he stated.

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