Hudco in talks with global institutions to raise $1 bn by Mar: CMD

We are in advanced discussion with KfW (Germany's state-owned development bank) to raise $200 million, said Sanjay Kulshreshta

State-owned infra financing institution Housing and Urban Development Corporation Ltd (Hudco) is in talks with multilateral development banks, including ADB, and institutions to mobilise $1 billion to fund infra projects in the country, its Chairman and Managing Director Sanjay Kulshreshta said.

"We are in advanced discussion with KfW (Germany's state-owned development bank) to raise $200 million," he told PTI.

Besides, the company is in talks with multilateral development banks like the Asian Development Bank for a loan of $500 million and $200-300 million from the Asian Infrastructure Investment Bank in the current financial year, he said.

"We are hoping to finalise these fundraises of about $1 billion during the current financial year for on-lending to infrastructure projects," he added.

 

Foreign funding will not only diversify the resource-raising stream but also bring down the cost of funds, he said.

Further elaborating on the company's initiative to achieve better cost efficiencies, Kulshreshta said, the company has been authorised by the government to issue 54 EC Capital Gain Bonds, and it has mobilised Rs 50 crore so far during the year.

The maiden 54 EC Capital Gain Bonds issued by the company carried a coupon rate of 5.39 per cent.

Capital Gains Bonds are a type of investment instrument, authorised by the Income Tax Act, 1961. These bonds provide an opportunity for individuals to save on long-term capital gains taxes incurred from the sale of property or assets.

By investing in these bonds, an investor can defer the payment of capital gains tax and enjoy the potential benefits of a reliable investment option.

About further issuance, Kulshreshta said the company aims to mobilise another Rs 150 crore during the remaining part of the current financial year.

For the first half ended September 2025, Hudco's loan sanctions rose 22 per cent to Rs 92,985 crore against Rs 76,472 crore in the same period of the previous year.

During the period, loan disbursements increased to Rs 25,838 crore from Rs 21,699 crore in H1 FY25.

Kulshreshta added that the company will achieve net zero NPA in the next 15 months due to its focus on investment-grade projects only.

Asset quality of the company improved with the gross non-performing assets (NPAs) declining to 1.21 per cent at the end of September 2025 from 2.04 per cent at the end of September 2024.

Similarly, net NPA, or bad loans, fell to 0.07 per cent from 0.31 per cent at the end of the first half of the previous financial year.