HUDCO has announced the assignment of an Environmental, Social, and Governance (ESG) rating through a regulatory disclosure dated March 12, 2026. The government enterprise informed stock exchanges about receiving this rating in compliance with SEBI listing regulations.

ESG Rating Details

The company received its ESG assessment from ESG Risk Assessments and Insights Limited, an independent rating provider. The evaluation resulted in specific metrics that reflect the company's sustainability and governance practices.

Rating Methodology

The ESG rating was assigned without direct engagement from HUDCO, indicating an unsolicited assessment. The rating agency conducted its evaluation based entirely on information available in the public domain, including publicly disclosed financial reports, sustainability disclosures, and other corporate communications.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation requires listed companies to inform stock exchanges about material events, including ESG rating assignments. The communication was addressed to both BSE Limited and National Stock Exchange of India Limited.

Corporate Communication

Company Secretary and Compliance Officer Vikas Goyal signed the disclosure document, ensuring proper authorization and compliance with regulatory requirements. The formal communication maintains HUDCO's commitment to transparency and adherence to listing obligations for its stakeholders and the investment community.

HUDCO announced that its Bond Allotment Committee has approved a significant debt fundraising initiative worth ₹1,442 crore through perpetual subordinated debentures. The committee meeting, held on February 13, 2026, from 12:30 PM to 1:15 PM, sanctioned the issuance under Series-1, 2025-26 on a private placement basis.

Issue Structure and Size

The debenture issue is structured with strategic flexibility to accommodate market demand:

The debentures are characterized as perpetual subordinated, listed, unsecured, taxable, rated, and non-convertible instruments, providing HUDCO with long-term capital flexibility.

Interest Terms and Payment Schedule

The financial terms of the debentures offer attractive returns for investors:

The annual interest payments will continue subject to the exercise of the call option by the issuer, providing predictable income streams for bondholders.

Perpetual Nature and Call Option

The perpetual structure distinguishes these debentures from conventional debt instruments. HUDCO retains a call option exercisable on the Call Option Date, being 10 years from the allotment date (February 13, 2026) or any annual anniversary thereafter. The exercise of this option requires prior approval from the Reserve Bank of India.

Upon exercising the call option, HUDCO may pay the outstanding maturity amount along with accrued but unpaid coupon and additional interest, if any. The bonds will not carry any obligation for coupon or otherwise after the maturity date once all amounts due have been paid.

Regulatory Compliance and Security Features

The debenture issuance complies with Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Key security and operational features include:

• Security Status: Unsecured
• Special Rights: None attached
• Payment History: No delays or defaults reported
• Redemption Details: Not applicable due to perpetual nature

The company confirmed no history of payment delays exceeding three months from due dates or defaults in interest or principal payments, reinforcing its creditworthiness for potential investors.