Narendra Modi's Washington test

Narendra Modi's Washington test

If Modi gets the world’s biggest power right, his pursuit of larger global goals...
Small banks or banks for ‘small’ people?

Small banks or banks for ‘small’ people?

Unless appropriate sub-limits are imposed on loans, there is a serious...

HUDCO to launch tax-free bonds issue to raise up to Rs 5,000cr

Dec 30 2012, 17:21 IST
Comments 0
SummaryHousing and Urban Development Corporation Ltd (HUDCO) will launch a public issue of tax-free bonds next month to raise up to Rs 5,000 crore for financing low-cost housing and urban infrastructure projects.

Housing and Urban Development Corporation Ltd (HUDCO) will launch a public issue of tax-free bonds next month to raise up to Rs 5,000 crore for financing low-cost housing and urban infrastructure projects.

For retail investors, the bond issue carries a coupon rate of 8.01 per cent per annum for 15 years maturity period and 7.84 per cent for 10 years. An investment up to Rs 10 lakh would qualify under retail category.

"We are coming out with a public issue of tax-free bonds to raise up to an extent of Rs 5,000 crore. We are offering 15 basis points more than other issuers which have recently launched their tax-free bonds," HUDCO Senior Executive Director (Finance) A K Kaushik told PTI.

HUDCO, a mini-ratna company, provide long-term finance for housing and urban infrastructure projects.

The coupon rate for qualified institutional buyers (QIB), corporates, high-net worth individuals has been fixed at 7.51 per cent per annum for 15 years and 7.34 per cent per annum.

The issue would open for the subscription on January 9 and closes on January 22. The face value of each bond is Rs 1,000.

The bonds will be listed on the NSE. SBI Capital Markets, Enam Securities, ICICI Securities and Kotak Mahindra Capital Company Ltd have been appointed as lead managers to the issue.

The company posted a net profit of Rs 630.33 crore over a gross income of Rs 2,778.63 crore in 2011-12 fiscal.

During the last fiscal, HUDCO sanctioned 130 schemes for a loan amount of Rs 20,511 crore as against Rs 19,762 crore in the previous year.

Out of the total loan sanctioned, Rs 6,307 crore has been sanctioned for housing and Rs 14,204 crore for infrastructure projects. The disbursal stood at Rs 6,905 crore in 2011-12 fiscal.

Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...