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HUDCO to rise 5000 cr to fund low-cost housing

1 Comment Sub Category:Delhi-NCR,Realty News,Residential Real Estate Posted On: Dec 31, 2012

New Delhi- Housing and Urban Development Corporation Ltd (HUDCO) has planned to raise around Rs 5,000 crore. In this regard, the corporation will launch a public issue of tax-free bonds next month.

The fund raised will be used for funding low-cost housing and urban infrastructure projects.

Investments up to Rs 10 lakh falls under retail category. The bond issue for the retail investors carries a coupon rate of 8.01 percent per annum for 15 years maturity period and 7.84 percent per annum for 10 years.

The coupon rate for qualified institutional buyers (QIB), corporates, high net worth individuals has been fixed at 7.51 percent per annum for 15 years and 7.34 percent per annum for 10 years.

HUDCO would offer extra 15 basis points than any other bond issuers which has recently launched their tax-free bonds. It has been planned to start the issue on January 9 and would end on January 22.

The bonds will be listed on the NSE. Each bond would have a face value of Rs 1000. SBI Capital Markets, Enam Securities, ICICI Securities and Kotak Mahindra Capital Company Ltd are the lead managers to the issue.

In the last fiscal of 2011-2012, HUDCO gained a profit of Rs 630.33 crore over a gross income of Rs 2,778.63 crore. The company sanctioned 130 schemes for a loan amount of Rs 20,511 crore, of which Rs 6,307 crore has been sanctioned for housing development projects and Rs 14,204 crore for infrastructure projects.

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One Response to “HUDCO to rise 5000 cr to fund low-cost housing”

  1. [...] HUDCO to rise 5000 crore to fund low-cost housing [...]

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