In one of the recent events of fundraising in the financial market, HUDCO (Housing and Urban Development Corporation Ltd.) raised as many as Rs. 1,300 crores through the help of private placement of non-convertible bonds. The funding was done mainly to finance affordable housing and urban infrastructure project.

hudco-raises-fund-from-bonds

The State-owned enterprise the amount through the private placement issues of unsecured, redeemable and non-convertible bonds at a lowest possible interest rate. The entire amount will be used in infrastructure development in various cities led by HUDCO.

The private placement issues of bonds at first stage on September 16 worth Rs. 700 crores were raised at 7.36% and the second stage fundraising went further for Rs. 600 crores at the rate of 7.35% on September 22. The amount raised in two section at quite a minimal rate of interest will be used for developing and selling houses at the same rate. Also, the rest of bonds will fall due for maturity in November 2019 and January 22, 2020, respectively.

Till date, HUDCO has raised 1,800 crores INR so far within the present fiscal year. The previous fundraising was done in the same way which through a private placement of non-convertible bonds. The firm, later on, raised another Rs. 250 crores with the support of different source such as public deposits. Earlier, it has disbursed 8,248 crores INR for housing and urban infrastructure projects in 2015-16 henceforth, expecting of higher disbursement in the current financial year of 2016-17.

The techno-financial institution engaged in the financing and promotion of housing and urban projects related to infrastructure across the country. It operates at the administrative level and control of the Housing and Urban Poverty Alleviation Ministry. The company’s net profit for the year 2015-16 was settled to Rs. 740 crores approximately wherein the gross income was worth Rs. 3,302.20 crores.

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