HUDCO (Housing and Urban Development Corporation), a prominent player in India's urban infrastructure financing sector, has announced a significant move in the debt market. The company is set to raise ₹3,000 crore through a private placement of bonds, showcasing its strategic approach to capital raising.

Bond Issue Details

HUDCO's 'Bond Allotment Committee' has approved the issuance of Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative NCDs (Non-Convertible Debentures) with a face value of ₹1,00,000 each. This Series-D 2025 bond issue is structured as follows:

Key Features of the Bond

• Tenure: 3 years
• Coupon Rate: 6.64% per annum
• Interest Payment: Yearly basis
• Maturity Date: July 17, 2028
• Security: Unsecured

The bonds will be listed on the BSE, enhancing their liquidity and tradability.

Interest Payment Schedule

The NCDs will offer interest payments in 2026, 2027, and 2028, aligning with the yearly payment structure and the three-year tenure of the bonds.

Purpose and Implications

While the specific use of proceeds hasn't been disclosed, such large-scale fundraising typically indicates plans for expansion, refinancing existing debt, or funding ongoing projects. For HUDCO, a Navratna CPSE (Central Public Sector Enterprise), this move could be aimed at strengthening its position in financing housing and urban infrastructure projects across India.

Market Context

This private placement comes at a time when the debt market is witnessing increased activity. HUDCO's decision to raise funds through this route suggests confidence in investor appetite for corporate bonds, especially from government-backed entities with strong credit ratings.

The success of this bond issue could have positive implications for HUDCO's future growth plans and its ability to support urban development initiatives across the country. Investors and market watchers will be keenly observing the response to this private placement, as it could set a benchmark for similar issues in the infrastructure financing sector.

As HUDCO moves forward with this significant fundraising initiative, it reinforces the company's commitment to playing a crucial role in India's urban development landscape. The coming weeks will reveal the market's reception to this bond issue and its potential impact on HUDCO's financial strategy.

Housing and Urban Development Corporation Limited (HUDCO) has made significant strides in both its business expansion and financial performance, as revealed in recent developments and quarterly results.

Massive MoU for Madhya Pradesh Development

HUDCO has signed a landmark Memorandum of Understanding (MoU) with Madhya Pradesh Urban Development Company Limited (MPUDCL) on July 11, 2025, in Indore. The non-binding agreement outlines HUDCO's commitment to provide financial assistance of ₹1,00,000 crore (₹1 lakh crore) over a five-year period for various housing and infrastructure projects in Madhya Pradesh.

Key points of the MoU include:

• Financial assistance of ₹1 lakh crore over 5 years
• Focus on housing and infrastructure projects in Madhya Pradesh
• Provision of consultancy services for the projects
• Capacity-building support for successful implementation

The MoU was signed in the presence of Dr. Mohan Yadav, Chief Minister of Madhya Pradesh, and Shri Kailash Vijayvargiya, Minister of Urban Development and Housing, Madhya Pradesh, along with other dignitaries. Shri Sanjay Kulshrestha, the Chairman & Managing Director of HUDCO, represented the company during the signing ceremony.

Strong Q4 Financial Performance

In addition to the strategic MoU, HUDCO has reported robust financial results for the fourth quarter:

The company's financial health shows improvement, with notable highlights including:

• A 4.00% year-on-year growth in net profit, reaching ₹728.00 crore
• A significant 26.00% increase in Net Interest Income (NII), amounting to ₹962.00 crore
• Enhanced asset quality with reduced Non-Performing Assets (NPAs)

These results demonstrate HUDCO's strong financial position and its capacity to undertake large-scale projects like the one outlined in the MoU with MPUDCL.

The combination of strategic partnerships and solid financial performance positions HUDCO as a key player in urban development and housing finance in India. The company's commitment to providing both financial assistance and consultancy services underscores its holistic approach to supporting infrastructure and housing projects in Madhya Pradesh.