Housing and Urban Development Corporation (HUDCO) has come out with a tax-free bond issue in the nature of secured, redeemable, non-convertible debentures amounting to Rs 750 crore with an option to retain oversubscription up to Rs 4,809.20 crore.

According to a news report in Business Line, the bonds will be listed on the Bombay stock exchange (BSE). The issue opens on September 17 and closes on October 14. The minimum application size for the issue is five bonds of Rs 1,000 each and in multiples of one bond thereafter. The bonds will be issued in both physical and dematerialised forms.

A coupon rate of 8.14 per cent, 8.51 per cent and 8.49 per cent, payable annually for 10, 15 and 20 years respectively is offered for qualified institutional buyers, corporates and high networth individuals applying for bonds of over Rs 10 lakh. An additional 0.25 percentage points will be given to retail individual investors subscribing up to Rs 10 lakh. Forty per cent of the issue is reserved for retail investors.