Hudco to raise up to Rs4,810 crore via tax-free bonds
16 Sep 2013 10:27 PM GMT
State-owned company Housing and Urban Development Corporation (HUDCO) will hit the markets on September 17 to raise up to Rs. 4,810 crore through a public issue of tax free bonds.
Hudco will use the proceeds for lending to low-cost housing and urban infrastructure projects.The Finance Ministry has allowed Hudco to raise Rs. 5,000 crore through bonds during this fiscal year, of which Rs. 190.8 crore has been raised last month through private placement to institutional investors.‘We are launching the public issue of tax-free bonds on 17 September. The issue will close on 14 October,’ V P Baligar, chairman and managing director of Hudco said.
‘The minimum size of the bond issue is Rs. 750 crore, but we expect to raise the entire Rs. 4,810 crore as our coupon rate is very attractive,’ he said, adding that the bonds have received a positive rating from India Rating and Research.
The funds would be utilised to finance the government's housing and urban infrastructure projects, Baligar added.
For retail investors applying for bonds up to Rs. 10 lakh, the coupon rate shall be 8.39 per cent per annum for 10 years, 8.76 per cent for 15 years and 8.74 per cent for 20 years. The bonds bear a coupon rate of 8.14 per cent per annum for 10 years, 8.51 per cent for 15 years and 8.49 per cent for 20 years for qualified institutional buyers (QIB), corporates and high net worth individuals (HNIs).
The Hudco chief said this is the first public issue of tax-free bonds by the company this fiscal year, and that it had raised about Rs. 2,400 crore during last fiscal year.Hudco, a mini-ratna firm, is a techno-financial institution engaged in the financing and promotion of housing and urban infrastructure projects throughout India.
The company posted a net profit of Rs. 700 crore over total revenue of Rs. 2,923 crore during last fiscal year. It had sanctioned projects worth Rs. 23,000 crore.
‘Our target is to disburse Rs. 7,000 crore during the current fiscal,’ he said.
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Baligar also highlighted that Hudco has initiated some new schemes such as 'rent-to-own' where government employees would get an opportunity to own a house after retirement with support from their organisations.
Hudco will use the proceeds for lending to low-cost housing and urban infrastructure projects.The Finance Ministry has allowed Hudco to raise Rs. 5,000 crore through bonds during this fiscal year, of which Rs. 190.8 crore has been raised last month through private placement to institutional investors.‘We are launching the public issue of tax-free bonds on 17 September. The issue will close on 14 October,’ V P Baligar, chairman and managing director of Hudco said.
‘The minimum size of the bond issue is Rs. 750 crore, but we expect to raise the entire Rs. 4,810 crore as our coupon rate is very attractive,’ he said, adding that the bonds have received a positive rating from India Rating and Research.
The funds would be utilised to finance the government's housing and urban infrastructure projects, Baligar added.
For retail investors applying for bonds up to Rs. 10 lakh, the coupon rate shall be 8.39 per cent per annum for 10 years, 8.76 per cent for 15 years and 8.74 per cent for 20 years. The bonds bear a coupon rate of 8.14 per cent per annum for 10 years, 8.51 per cent for 15 years and 8.49 per cent for 20 years for qualified institutional buyers (QIB), corporates and high net worth individuals (HNIs).
The Hudco chief said this is the first public issue of tax-free bonds by the company this fiscal year, and that it had raised about Rs. 2,400 crore during last fiscal year.Hudco, a mini-ratna firm, is a techno-financial institution engaged in the financing and promotion of housing and urban infrastructure projects throughout India.
The company posted a net profit of Rs. 700 crore over total revenue of Rs. 2,923 crore during last fiscal year. It had sanctioned projects worth Rs. 23,000 crore.
‘Our target is to disburse Rs. 7,000 crore during the current fiscal,’ he said.
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Baligar also highlighted that Hudco has initiated some new schemes such as 'rent-to-own' where government employees would get an opportunity to own a house after retirement with support from their organisations.
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