HUDCO bonds issue making headways

HUDCO has already raised Rs 1585 crore of the targeted Rs 4809 crore

GN Bureau | September 26, 2013



According to the Bombay stock exchange website, Housing and Urban Development Corporation's (HUDCO) tax free bonds issue, targeted to raise up to up to Rs 4809 crore, has already garnered Rs 1585 crore.

According to a news report in the Financial Express, HUDCO’s bonds have a coupon rate of 8.14% for 10 years, 8.51% for 15 years and 8.49% for 20 years for corporates, qualified institutional buyers and high net worth individuals applying for bonds more than Rs 10 lakh.

The finance ministry has allowed HUDCO to raise Rs 5000 crore through tax free bonds and the company raised Rs 190 crore through private placements last month.

The government has allowed 13 public sector institutions to raise Rs 48,000 crore through tax free bonds in 2013-14 to meet their infrastructure investment needs.
 

 

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