HUDCO to raise Rs 750 crore through tax-free bonds
Mumbai: State-run Housing and Urban Development Corporation (HUDCO) on Friday said it plans to raise Rs 750 crore through tax-free bonds with an option to retain over subscription up to shelf limit of Rs 5,000 crore.
The bond issue will open on January 9 and close on January 22. The face value of each bond is Rs 1,000.
"We plan to raise Rs 750 crore, but our intent is to mobilise the entire Rs 5,000 crore by March," HUDCO Chairman and Managing Director V P Baligar told reporters here.
The company intends to utilise the proceeds for lending purposes, working capital requirements, augmenting the resource base and meet other operational needs, he said.
Last year, the company mobilised Rs 5,000 crore and managed to utilise all the funds, he said.
HUDCO is offering 15 basis points more than other issuers which have recently launched their tax-free bonds, he said, adding, "for the first time ever, non-resident Indians and foreign institutional investments will be able to participate in the issue."
The coupon rate for qualified institutional buyers (QIB), corporates and high-net worth individuals has been fixed at 7.51 percent per annum for 15 years and 7.34 percent for 10 years. For retail investors, the coupon rate is 7.84 percent for 10 years and 8.01 percent for 15 years.
The bonds will be listed on NSE. SBI Capital Markets, Enam Securities, ICICI Securities and Kotak Mahindra Capital Company have been appointed as lead managers to the issue.
The mini-ratna PSU has so far disbursed Rs 82,000 crore, of which Rs 31,000 crore was towards housing projects while the remaining Rs 51,000 crore was for infrastructure projects, Baligar said.
"At present, the housing portfolio constitutes around 30 percent of the total disbursements. By 2020, we expect the share of housing portfolio to increase to 50 per cent, while the infrastructure portfolio will be at 50 percent."
The company intends to disburse Rs 7,000 crore worth of loans in FY13, Baligar said.