HUDCO raises Rs 1,788 cr via tax free bonds

Funds raised through the issue will be used primarily for financing housing projects

State-run HUDCO has raised Rs 1,788.50 crore through tax free bonds and the amount would be used primarily for financing housing projects for EWS/LIG categories.

Housing and Urban Development Corporation (HUDCO)'s issue of tax free bonds, launched on March 2, was oversubscribed with subscription of about Rs 8,000 crore.

"We have raised Rs 1,788.50 crore through second tranche of tax free bonds. All the four categories QIB, Corporates, HNIs and retail -- were subscribed," a company official said.

In January, HUDCO had raised Rs 1,711.50 crore through the first tranche of public issue of tax free bonds.

The company last month raised Rs 211.50 through private placement of bonds. It had earlier raised Rs 1,288.50 crore through three tranches of private placement of bonds.

HUDCO has raised Rs 5,000 crore so far this fiscal as permitted by the government.

The funds raised through the issue will be utilised to finance the projects and activities mainly relating to housing for EWS/LIG categories during the current year and over the years and for such other purposes as may be permitted by Ministry of Finance or any other authority, from time to time.

For QIBs, Corporates and HNIs, the bonds carried interest at the coupon rate of 7.04% per annum and 7.39% per annum, for a tenor of 10 years and 15 years, respectively.

For retail individual investors investing up to Rs 10 lakh, the bonds carried interest at the coupon rate of 7.29% per annum and 7.69% per annum, for a tenor of 10 years and 15 years, respectively.

HUDCO is a techno-financial institution engaged in the financing and promotion of housing and urban infrastructure projects throughout the country.