MARKET UPDATE
| HUDCO launches tax-free bonds issue, plans to raise Rs 5K cr Wed, 09 Jan 2013 16:23:15 +0530 |
| Business Standard Economy Policy News Housing and Urban Development Corporation ( HUDCO) today launched its public issue of tax- free bonds, through which it aims to raise up to Rs 5,000 crore for lending to low-cost housing and urban infrastructure projects. For retail investors, the bond issue carries a coupon rate of 8.01% per annum for 15 years maturity period and 7.84% for 10 years. An investment up to Rs 10 lakh would qualify under retail category. "HUDCO has launched its tax-free bond issue to raise up to Rs 5,000 crore for lending to housing and core infrastructure projects. The yields are attractive and we are confident that issue will be a success," Minister for Housing and Urban Poverty Alleviation Ajay Maken told reporters here. Highlighting the features of the issue, HUDCO Chairman and Managing Director V P Baligar said the company is offering 15 basis points more than other issuers which have recently launched their tax-free bonds. The coupon rate for qualified institutional buyers (QIB), corporates, high-net worth individuals has been fixed at 7.51% per annum for 15 years and 7.34% per annum. Foreign institutional investors and Non-resident Indians can also invest in the tax free bond issue, which would close on January 22. The face value of each bond is Rs 1,000. The bonds will be listed on the NSE. HUDCO, a mini-ratna firm, is a financial institution that provide long-term finance for housing and urban infrastructure projects. The company posted a net profit of Rs 630.33 crore over a gross income of Rs 2,778.63 crore in 2011-12 fiscal. |
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