Housing and Urban Development Corporation Ltd. (HUDCO) on Wednesday raised Rs 1,905 crore through a seven-year bond issue. The increase amounted to a coupon rate of 6.98%, according to a company statement. “This performance stands out as the broader market faced unexpected yield pressures,” HUDCO said on Thursday, adding that this was despite expectations of softer interest rates following the RBI’s recent monetary policy measures.Commenting on the fundraising, HUDCO chairman Sanjay Kulshrestha said the public sector undertaking (PSU) is committed to optimizing costs “with the aim of ensuring the creation of a bankable, sustainable and resilient infrastructure.”
Highlighting market volatility, HUDCO said corporate bond yields have risen despite the 25 basis points cut in Repo rate and announcement of Rs 1 lakh crore Open Market Operations (OMO) purchases, amid global uncertainties. “Reflecting this sentiment, two PSU issuers canceled their planned bond issuances on December 9 after receiving levels that fell short of expectations,” HUDCO said.
“Against this backdrop, HUDCO’s ability to obtain financing at nearly 10 basis points below secondary market levels underlines the company’s strong credit profile, investor confidence and disciplined liability management,” the company said.
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