The Housing and Urban Development Corporation (HUDCO) has successfully approved the private placement raising of ₹1,442 crore through Perpetual Subordinated, Unsecured, Taxable, Rated, Non-Convertible Debentures under Series-1, 2025-26. The issue includes a base size of ₹500 crore supplemented by a Green Shoe Option of ₹942 crore. The fixed coupon rate for these perpetual instruments is set at 7.87%, with the first interest payment scheduled for February 13, 2027.
HUDCO Confirms Debt Issuance Approval
The Bond Allotment Committee of Housing and Urban Development Corporation Limited (HUDCO) met on February 13, 2026, to approve the decision to raise capital through debt instruments. The committee sanctioned the raising of Perpetual subordinated, listed, unsecured, taxable, rated, non-convertible debentures under Series-1, 2025-26, utilizing the Private Placement route.
Issue Size and Structure
The total issue size has been finalized at Rs. 1,442 crore. This aggregate figure comprises:
- Base Issue Size: Rs. 500 Crore
- Green Shoe Option: Rs. 942 Crore
The instruments are proposed to be listed on the BSE. They are designated as Perpetual subordinated, unsecured, taxable, and rated instruments.
Instrument Terms and Interest Rate
The coupon rate agreed upon for this issuance is fixed at 7.87%.
The schedule for interest payments is detailed as follows:
- First interest payment will be made on 13.02.2027.
- Subsequent interest payments will occur annually on February 13th every year, contingent upon the issuer exercising the Call Option.
Tenure and Call Option Details
The tenor of the debentures is described as Perpetual, meaning there is no fixed maturity date, though the instrument is subject to a Call Option.
The Call Option Date is set to occur 10 years from the date of allotment (i.e., 13.02.2026), or on any subsequent annual anniversary. The Issuer may exercise this option only upon receipt of prior written approval from the RBI.
Maturity is Not applicable as the Bonds are perpetual. Any outstanding principal and accrued interest can only be paid upon exercising the Call Option with RBI approval.
Security and Privileges
The debentures are classified as Unsecured, meaning no assets have been specifically charged as security. Furthermore, the instruments carry No special rights, interests, or privileges attached to them. In the event of delay in interest or principal payment exceeding three months, the instrument documentation confirms No specific covenants or remedies beyond standard default procedures.
The Bond Allotment Committee meeting for this approval commenced at 12.30 Noon and concluded at 01.15 PM on the date of the announcement.
Source: BSE
