President of Hudco and Managing Director, Sanjay Koulshrestha
The Urban Housing and Development Corporation (HUDCO) will seek to refinance almost ₹ 4,000-5000 million rupees in high-cost bank loans through lower interest bail bonds therefore. Commercial.
Most bank loans to be refinanced have an interest or 7.3 – 7.5 percent. Against this, the last collection of Hudco funds, for a sum of ₹ 2.5 billion rupees, through bonds involved an interest rate of 6.9 percent.
Refinancing is the process of replacing an existing loan with a new one, or to obtain better terms such as a lower interest rate or a shorter loan period.
“We are looking to reduce the cost of funds and make the law explore variation options. Therefore, we will refinance some of the previous high-cost funds through lower cost alignment options. Even a donation of basic points of 10-20 gives us a good liver, so refinance” KULSHrestha.
The NBFC has approvals for an increase in funds of ₹ 60,000 million rupees.
Recently he received government approvals for emission or zero -response zero coupon bonds, a rarely used but selective premium offer, or up to ₹ 5000 million rupees (at the expiration), separated from the green light emitting capital gains bonds.
Bond emission
Hudco intends to raise some ₹ 2,500 – Modd crore through thesis one, zero coupon bonds, mainly aimed at companies. In general, a zero coupon bonus is a debt instrument that is sold with a discount to its nominal value and does not pay the duration of periodic interests in your life. Instead, the investor receives the complete nominal value at the expiration. So two entities backed by the Government-REC (Rural Electrification Corporation LTD) and PFC (Power Finance Corporation) have allowed them to issue thesis bonds.
Capital gains bonds, called Bonds of Section 54ec, will allow the company to take advantage of the retail segment, and the increase in the expected funds is in the range of ₹ 500–1000 million rupees. “We are a new player here. So there is some competition. We will carry out PAN-India shows to take advantage of this segment,” he said.
Touching Japan and the United States
According to Koulshrestha, at least two sections of fundraising are explored from Japan, with each section for a sum of $ 500 million (around ₹ 4000 million rupees). The cost of the funds is expected to be around 6 percent, substantially lower.
The company could also take advantage of the US market, after Q3Fy25, depending on the movements of the Fed rate. At this time, the cost of the United States funds operates in the range of 7 to 7.5 percent, the sources said.
“Then, if there is any change in the cost of the funds of the United States, it will also take advantage of that market. Probably publish the third quarter of this year,” he said.
HUDCO aims to reduce its cost of funds to 6.6 – 6.7 percent in fiscal year26; Compared to the exit rates of 6.9 percent of the FY25. The company’s NP remains less than 1 percent.
Disbursements
The company, one of the oldest housing financing entities in the country, recently oblinear approval as a financial entity that is not banking. It is aimed at a disbursement or ₹ 50,000 million rupees in the fiscal year26, almost 25 percent higher over the millions of rupees of 40,000 modes of the fiscal year25.
The disbursements mainly cover 30 – 35 percent in the road segment, 5 – 10 percent in multiple modal runners, 20 – 25 percent in energy and engineering segment and around 10 percent in homes. These mainly cover the government, including those of the state government.
Posted on April 22, 2025
