Hudco Aims To Raise Rs 1,750 Cr This Year

In view of its increased operations, Hudco has raised its resource mobilisation target for 1997-98 to Rs 1,750 crore, from the earlier figure of Rs 1,450 crore. Lined up for launch are various finance-raising schemes, including a public deposit scheme slated to open today and a Rs 100-crore rupee-bond issue.

Interest will be compounded on a monthly basis and not on a quarterly one for the public deposit scheme which will be on tap through the entire year.

The scheme will have returns ranging from 12 to 14 per cent, though the annualised returns will be higher owing to the monthly compounding of interest, said Hudcos chairman cum managing director V Suresh. It will involve three schemes Regular Plus, a periodic income scheme and Multiplier Plus and Cash Certificate.

 

Hudco is also awaiting approval from the finance ministry and the Reserve Bank of India (RBI) for its Rs 100 crore rupee-bond issue.

In what will be one of the first such schemes from a housing finance institution, Hudco has already tied up funds worth Rs 100 crore by issuing rupee-bonds to overseas investors at an interest rate of 14 per cent per annum. The main advantage of this will accrue in terms of raising finance from foreign sources without the risk of fluctuations in the foreign exchange rates. This is in addition to Hudcos usual sources of revenue from GIC, LIC and refinance from NHB, as well as international access to funds from KFW, OECF and other public deposit schemes.

Earlier, 24 per cent of the infrastructure bonds could be reserved for NRIs, FIIs and overseas corporate bodies (OCBs). The bonds will have a 10 year maturity period. In another unique scheme, the housing finance institution has also decided to finance upto Rs 10 crore in each case as working capital to various housing and urban development agencies, both in the public as well as the private sector.

To meet their immediate requirement of working capital.

The loan will be available at 17 per cent interest for a period between six months and two years.

Suresh said: In the absence of any such fund being available to such agencies from any other source, the Hudco loan will provide operational finance to various housing finance agencies and all borrowing agencies of Hudco, to tide over their working capital needs in the short term period.

Earlier in March, Hudco had raised Rs 250 crore through the first ever public issue of infrastructure bonds. The issue had been oversubscribed and Hudco had been allowed to exercise the greenshoe option of Rs 50 crore.