NEW DELHI: State-owned HUDCO has raised Rs 1,711 crore through tax free bonds and the fund would be utilised mainly to finance projects related to housing for EWS/LIG categories.
Housing and Urban Development Corporation (HUDCO)'s issue of tax free bonds, launched on January 27, was oversubscribed 3.64 times with subscription worth Rs 6,233 crore.
"We have raised Rs 1,711 crore through tax free bonds. We got an overwhelming response. All the four categories QIB, Corporates, HNIs and retail -- were subscribed," a company official said.
HUDCO has raised Rs 3,000 crore so far this fiscal. It had earlier raised Rs 1,288.50 crore through private placement of bonds.
The company has the permission to raise up to Rs 5,000 crore in this fiscal through this route.
HUDCO had hit the market last week with an issue of tax free bonds with a face value of Rs 1,000 each in the nature of tax free, secured, redeemable, non-convertible debentures, aggregating to Rs 500 crore, with an option to retain over- subscription up to Rs 1,211.50 crore, aggregating up to Rs 1,711.5 crore.
The issue closed on January 28. It was scheduled to close on February 10. Bonds are proposed to be listed on BSE.
The funds raised through the issue will be utilised to finance the projects and activities mainly relating to housing for EWS/LIG categories during the current year and over the years and for such other purposes as may be permitted by Ministry of Finance or any other authority, from time to time.
For QIBs, corporates and HNIs, the bonds carry interest at the coupon rate of 7.02 per cent per annum and 7.39 per cent per annum, for a tenor of 10 years and 15 years, respectively.
For retail individual investors investing up to Rs 10 lakh, the bonds carry interest at the coupon rate of 7.27 per cent per annum and 7.64 per cent per annum, for a tenor of 10 years and 15 years, respectively.
HUDCO is a techno-financial institution engaged in the financing and promotion of housing and urban infrastructure projects throughout the country.
SOURCE: ETRealty.com
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