HUDCO (Housing and Urban Development Corporation Ltd.) plans to issue unsecured, taxable, redeemable, non-convertible, non-cumulative NCDs aggregating up to ₹2,500 crore via private placement. The decision was approved on April 4, 2025. The proceeds will augment long-term resources for lending, debt repayment, and general business purposes. The bonds have a face value of ₹1,00,000 each.
Bond Issuance Approval
HUDCO has received board approval on April 4, 2025, to raise funds up to ₹65,000 crore through bonds and debentures during the financial year 2025-26. A bond allotment committee meeting scheduled for December 12, 2025, will further discuss and approve the issuance and allotment details.
Details of the NCDs
The proposed issuance involves unsecured, taxable, redeemable, non-convertible, non-cumulative NCDs with a face value of ₹1,00,000 each. The total value of these bonds will aggregate up to ₹2,500 crore. These bonds will be issued on a private placement basis as per the enclosed term sheet.
Utilization of Funds
The funds raised will be used to augment HUDCO’s long-term resources. The specific objectives include meeting business and operational requirements, funding lending activities, and repaying/refinancing existing debts. The funds will also be available for any other general corporate purpose within the ordinary course of business.
Bond Features
The NCDs are proposed to be listed on BSE. The indicative rating for these NCDs is ‘[ICRA] AAA’ (Stable), ‘CARE-AAA’ (Stable) and ‘ÍND-AAA’ (Stable). HUDCO retains the right to re-purchase and re-issue these NCDs in accordance with applicable regulations. The issue size is ₹500 crore plus a green shoe option to retain oversubscription.
Source: BSE
