Hudco in talks with global development institutions to raise $1 billion by March: CMD

State-owned infrastructure finance institution Housing and Urban Development Corporation Ltd (Hudco) is in talks with multilateral development banks, including ADB, and institutions to mobilize $1 billion to finance infrastructure projects in the country, chairman and managing director Sanjay Kulshreshta said.

“We are in advanced talks with KfW (the state-owned German development bank) to raise $200 million,” he told PTI.

Moreover, the company is in talks with multilateral development banks such as the Asian Development Bank for a loan of $500 million and $200-300 million from the Asian Infrastructure Investment Bank in the current financial year, he said.

“We hope to complete this fundraising of approximately $1 billion during the current fiscal year for on-lending to infrastructure projects,” he added.

Foreign financing will not only diversify the flow of resources but also bring down the cost of the funds, he said.

Elaborating on the company’s initiative to achieve better cost efficiency, Kulshreshta said the company has been authorized by the government to issue 54 EC Capital Gain Bonds and has mobilized ₹50 crore so far during the year.

The first 54 EC Capital Gain Bonds issued by the company had a coupon rate of 5.39 percent.

Capital gains bonds are a type of investment vehicle authorized by the Income Tax Act of 1961. These bonds offer individuals the opportunity to save on long-term capital gains taxes that arise from the sale of real estate or assets.

By investing in these bonds, an investor can defer payment of capital gains taxes and reap the potential benefits of a reliable investment option.

On further issuance, Kulshreshta said the company aims to mobilize another ₹150 crore during the remainder of the current financial year.

For the first half ended September 2025, Hudco’s loan sanctions rose 22 per cent to ₹92,985 crore, against ₹76,472 crore in the same period of the previous year.

During the period, loan disbursements rose to ₹25,838 crore from ₹21,699 crore in H1 FY25.

Kulshreshta added that the company will achieve net zero NPA in the next fifteen months due to its focus on investment-grade projects only.

The company’s asset quality improved with gross non-performing assets (NPAs) declining from 2.04 percent at end-September 2024 to 1.21 percent at end-September 2025.

Similarly, net NPA, or bad loans, fell to 0.07 percent from 0.31 percent at the end of the first half of the previous fiscal.

Published on November 16, 2025