Housing and Urban Development Corporation's (Hudco) tax-free bond issue to raise around Rs 4,800 crore will open for subscription on September 17, sources have said.
The core issue size will be Rs 750 crore, while the rest would be green shoe.
The state-run lender will offer coupon rate of 8.4%, 8.51% and 8.49% for bonds with tenure of 10-year, 15-year and 20-year respectively. Retail applicants will get 25 basis points higher coupon in all three tenures.
Hudco's public issue of tax-free bonds is this financial year's second such offering after Rural Electrification Corporation (REC). The coupon offered by Hudco is slightly higher than REC. Hudco has a credit rating of AA+, one notch lower than REC's AAA.
The last day of the offering will be October 14, however, the issue can close earlier if it garners full subscription.
