HUDCO Defies Volatile Market Sentiment; Raises Rs. 1,905 Crore at Competitive 6.98% Amid Rising Yields

In a week marked by heightened volatility in the debt markets, Housing and Urban Development Corporation Ltd. (HUDCO), a Navratna CPSE and NBFC–IFC, successfully raised Rs. 1,905 crore through a 7-year bond issuance on 10th December at a competitive coupon of 6.98% on the SEBI-mandated electronic bidding platform.

The achievement stands out as the broader market faced unexpected yield pressures. Despite expectations of softer rates following the RBI’s recent monetary policy actions, including a 25 bps Repo Rate cut and announcement of Rs. 1 lakh crore OMO purchases, corporate bond yields moved upward amid global uncertainties. Reflecting this sentiment, two PSU issuers cancelled their planned bond issuances on 9th December after receiving levels that did not meet expectations. Furthermore, on 10th December, secondary market trades for 7-year PSU papers were recorded at elevated levels of 7.08–7.10%, underscoring the prevailing strain in the market.

Against this backdrop, HUDCO’s ability to secure funding nearly 10 bps below secondary market levels underscores the company’s strong credit profile, investor confidence, and disciplined liability management.

Commenting on the successful issuance, Shri Sanjay Kulshrestha, Chairman, HUDCO , said:

“HUDCO is committed to optimizing 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.”