is not bad. Everyone was focussed on the NTPC issue and now HUDCO’s tax-free bond issue will see better demand as it offers a higher coupon rate. It offers the highest coupon rate above 9% and it has preference for retail investors. So you should see demand coming in from corporates, high net-worth individuals and retail customers equally,” said Ajay Manglunia, senior vice-president at Edelweiss Capital.
HUDCO’s bonds offer a coupon rate of 8.51% for 10 years, 8.58% for 15 years and 8.76% for 15 years for corporates, high net-worth individuals and qualified institutional buyers, with retail investors getting an additional 25 basis points. The issue closes on January 10. HUDCO, in its earlier issue of tax-free bonds this year, had planned to raise R4,809 crore. It had raised R2,405 crore by the time the issue closed on October 14.