Hudco receives Rs 172 cr subscription on day 1 of tax-free bonds, targets Rs 5,000 cr
10 Jan 2013 6:17 AM IST
Housing and Urban Development Corporation (Hudco) saw a subscription of Rs 172 crore on the first day of its public issue of tax-free bonds through which the company aims to raise up to Rs 5,000 crore. ‘We have received an excellent response. On day one, we have been able to mobilise about Rs 172 crore,’ said Hudco Chairman and Managing Director V P Baligar.
Hudco, a financial institution that provide long-term finance for housing and urban infrastructure projects, got a subscription of about Rs 110 crore from retail investors and nearly Rs 60 crore from HNIs.
Baligar said that the company expects to raise the entire Rs 5,000 crore by January 22, when the issue closes. ‘We have got a good response from retail investors as coupon rates are higher for them,’ he said, adding that allotment would be done on the basis of first-come-first-serve basis.
For retail investors, the bond issue carries a coupon rate of 8.01 per cent per annum for 15 years maturity period and 7.84 per cent for 10 years. An investment up to Rs 10 lakh would qualify under retail category. The coupon rate for qualified institutional buyers (QIB), corporates, high-net worth individuals has been fixed at 7.51 per cent per annum for 15 years and 7.34 per cent per annum for 10 years.
‘Hudco has launched its tax-free bond issue to raise Rs 5,000 crore for lending to housing and core infrastructure projects. The yields are attractive and we are confident the issue will succeed,’ Housing and Urban Poverty Alleviation Minister Ajay Maken told reporters here.
Highlighting the features of the issue, Baligar said Hudco is offering 15 basis points more than other issuers which have recently launched their tax-free bonds.
Hudco, a financial institution that provide long-term finance for housing and urban infrastructure projects, got a subscription of about Rs 110 crore from retail investors and nearly Rs 60 crore from HNIs.
Baligar said that the company expects to raise the entire Rs 5,000 crore by January 22, when the issue closes. ‘We have got a good response from retail investors as coupon rates are higher for them,’ he said, adding that allotment would be done on the basis of first-come-first-serve basis.
For retail investors, the bond issue carries a coupon rate of 8.01 per cent per annum for 15 years maturity period and 7.84 per cent for 10 years. An investment up to Rs 10 lakh would qualify under retail category. The coupon rate for qualified institutional buyers (QIB), corporates, high-net worth individuals has been fixed at 7.51 per cent per annum for 15 years and 7.34 per cent per annum for 10 years.
‘Hudco has launched its tax-free bond issue to raise Rs 5,000 crore for lending to housing and core infrastructure projects. The yields are attractive and we are confident the issue will succeed,’ Housing and Urban Poverty Alleviation Minister Ajay Maken told reporters here.
Highlighting the features of the issue, Baligar said Hudco is offering 15 basis points more than other issuers which have recently launched their tax-free bonds.
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