HUDCO Gets Approval for Issuance of ₹50 Billion Zero-Coupon Bonds

The Housing and Urban Development Corporation (HUDCO) has obtained regulatory sanction to raise ₹50 billion worth of zero-coupon bonds, which is a big step towards its financial strategy. The step will help improve infrastructure financing, especially in affordable housing and urban development schemes.

 

Important Points:

 

✅ Bond Structure: The zero-coupon bonds shall be non-secured, tax-grossed, and redeemable, providing long-term investment opportunities.

✅ Board Approval: HUDCO's Bond Allotment Committee shall approve the issuance in their next meeting on April 23, 2025.

✅ Market Impact: The analysts have forecast that the bond issuance will improve HUDCO's liquidity, providing a boost to large-scale urban projects.

✅ Government Support: The Central Board of Direct Taxes (CBDT) has allowed HUDCO to issue capital gain tax exemption bonds, further strengthening its financial attractiveness.

✅ Credit Rating: The bonds have been given a high credit rating, upholding investor confidence in HUDCO's financial soundness.

 

With this strategic financial step, HUDCO looks to speed up urban development, upholding its pledge towards sustainable infrastructure expansion.

 

Source: Economic Times, NSDL