HUDCO has received formal approval from its Bond Allotment Committee for a significant fundraising initiative through Non-Convertible Debentures (NCDs). The Housing and Urban Development Corporation Limited's Bond Allotment Committee, in their meeting held on December 12, 2025, officially approved the raising of ₹1905.00 crores through these debt instruments.

Official Committee Approval Details

The Bond Allotment Committee meeting, which commenced at 11:30 AM and concluded at 12:00 Noon on December 12, 2025, provided formal authorization for the NCD issue. The company has notified both BSE Limited and National Stock Exchange of India Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

NCD Structure and Financial Terms

The approved NCD issue follows a structured approach with comprehensive terms:

Investment and Payment Features

The NCDs are structured as Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative instruments. The interest payment schedule has been designed with annual payments on December 12 each year from 2026 through 2032, with the principal amount due on the final maturity date of December 12, 2032.

Regulatory Compliance and Documentation

The approval comes with full regulatory compliance, as HUDCO has informed the stock exchanges under the relevant provisions of Regulation 30 of SEBI LODR. The company confirmed no delays in payment history, no defaults, and no special rights or privileges attached to the instruments. The formal documentation was signed by Achal Gupta, General Manager (Finance), ensuring proper authorization and compliance protocols.

Housing and Urban Development Corporation Limited (HUDCO), a key player in India's urban infrastructure and housing finance sector, has announced plans to issue unsecured, taxable, non-convertible debentures (NCDs) worth Rs 2,500 crore through private placement. This move signals HUDCO's strategic approach to debt financing and liquidity management.

Key Details of the NCD Issue

Purpose and Implications

HUDCO plans to utilize the funds raised through this NCD issue for various purposes:

1. Lending activities
2. Refinancing existing debt
3. General business operations

This diversified use of funds indicates HUDCO's focus on both expanding its core lending business and optimizing its debt structure.

Financial Context

To understand the significance of this NCD issue, let's look at HUDCO's recent financial position:

HUDCO's balance sheet shows significant growth, with total assets increasing by 37.54% year-over-year. The company's non-current liabilities have also grown substantially, indicating an increased focus on long-term financing.

Market Implications

1. Debt Market Impact: This large NCD issue may influence the corporate bond market, potentially affecting yields for similar-rated instruments.

2. Investor Interest: The 9% coupon rate could attract investors seeking stable returns in the current low-interest-rate environment.

3. Credit Profile: The unsecured nature of the NCDs suggests HUDCO's confidence in its credit standing and future cash flows.

Conclusion

HUDCO's Rs 2,500 crore NCD issue represents a significant move in its financing strategy. As the company continues to grow its asset base and expand its operations, this debt issuance provides it with the necessary capital to fund its plans. Investors and market watchers should closely monitor how HUDCO deploys these funds and the subsequent impact on its financial performance and market position in the urban infrastructure and housing finance sectors.