Strong Investor demand drives HUDCO’s Rs. 1,442 Crore Perpetual Tier I Bonds; Issue Oversubscribed Five Times

New Delhi: Housing and Urban Development Corporation Ltd. (HUDCO), a Navratna 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% per annum.

The bonds were issued via an electronic bidding platform and witnessed robust demand, with the issue being oversubscribed five times its base size. The issuance was subscribed by Qualified Institutional Buyers (QIBs), reflecting strong investor confidence in HUDCO’s financial strength and growth prospects. The bonds were subscribed by Qualified Institutional Buyers (QIBs), underscoring the institution’s strong credibility among institutional investors.

The Perpetual Tier I instruments will serve as a stable and permanent source of capital, strengthening HUDCO’s capital base, improving leverage and capital adequacy, and supporting sustainable balance-sheet growth.

The augmentation of Tier I capital will enhance HUDCO’s long-term financial resilience and provide additional headroom to support sustainable balance-sheet growth. The capital raised will enable the Corporation to further scale up its lending activities in the housing and urban infrastructure sectors, aligned with the Government of India’s vision for inclusive and sustainable urban development.

Speaking on the occasion, Shri Sanjay Kulshrestha, CMD, HUDCO, 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.”