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HUDCO has raised INR 1,905 crore through a 7-year bond issue priced at a coupon rate of 6.98%, strengthening its funding capacity for housing and urban infrastructure projects across India. The bonds were issued through SEBI's electronic bidding platform, reflecting steady investor confidence in HUDCO's financial strength. The funds will support affordable housing, municipal infrastructure, urban renewal and related development works. HUDCO said the competitive pricing helps manage borrowing costs while backing sustainable infrastructure creation. The government-owned lender continues to finance state agencies, housing boards and urban bodies, playing a key role in supporting city modernisation and housing growth in line with India's long-term urban development goals.
Housing and Urban Development Corporation Ltd (HUDCO) announced that it has successfully raised INR 1,905 crore through a bond issuance aimed at strengthening its resource base for financing housing and urban infrastructure projects across the country. The fundraise, completed earlier this week, was achieved via a 7-year bond carrying a coupon rate of 6.98 per cent, secured through SEBI's mandated electronic bidding platform. Advertisement
The company described the issuance as competitively priced, noting that securing funds at sub-7 per cent reflects stable investor confidence in HUDCO's creditworthiness and its long-term role in the infrastructure financing ecosystem. The raised capital is expected to support ongoing and upcoming projects across affordable housing, municipal infrastructure, urban renewal, and related sectors.
Sanjay Kulshrestha, Chairman of HUDCO, said the organisation remains focused on managing its borrowing costs effectively while contributing to the creation of sustainable and bankable infrastructure assets. He added that HUDCO's approach is aligned with the Government of India's long-term vision of Viksit Bharat 2047, under which urban development and housing expansion are key pillars.
HUDCO continues to play a significant role as a government-owned financial institution supporting state governments, development authorities, housing boards, and municipal bodies. Its lending portfolio spans sectors such as integrated townships, water supply networks, sanitation systems, road infrastructure within urban limits, and mass housing for low- and middle-income groups.
The latest bond issuance forms part of HUDCO's recurring capital-raising strategy to meet the rising demand for structured funding in India's fast-expanding urban centres. With major cities undertaking significant modernisation and Tier-II and Tier-III towns seeing accelerated growth, the organisation's financing support remains crucial for bridging infrastructure gaps and enabling long-term urban transformation.
Source - PTI
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