Housing and Urban Development Corporation Ltd (HUDCO) will issue taxable non-convertible debentures (NCDs) worth ₹3,000 crore in June 2025, as per the recent filing. The issuance is part of the company’s approved plan to raise up to ₹65,000 crore through bonds and debentures during the financial year 2025-26.
The ₹3,000 crore NCD issue comprises a base size of ₹500 crore and a green shoe option of up to ₹2,500 crore. These are unsecured, redeemable, non-convertible, non-cumulative debentures with a face value of ₹1,00,000 each. The debentures will be issued on a private placement basis through the NSE Electronic Bidding Platform (EBP), with bidding scheduled for June 4, 2025, and settlement on June 6, 2025.
The tenure of the NCDs is 3 years, with maturity and redemption scheduled on June 6, 2028. Interest will be paid annually on June 6 each year, starting from 2026.
HUDCO will use 100% of the proceeds to meet operational and business requirements. This includes lending activities and repayment or refinancing of existing short-term and long-term debt. The funds are not tied to any specific project.
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The NCDs will be offered to institutional investors, including mutual funds, banks, insurance firms, pension funds, and other eligible entities. The minimum application size is ₹1 crore. The interest will be paid at a fixed coupon rate, with a default interest rate of 2% above the coupon in case of payment delays.
As of 10:49 AM on June 03, 2025, HUDCO share price was trading at ₹250.53, a 1.08% increase, with a 6.05% increase over the past 6 months and a 12.99% drop over the past year.
The issue will provide HUDCO with long-term resources to support its regular business operations and manage existing debt obligations during the financial year.
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Published on: Jun 3, 2025, 12:37 PM IST
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