HUDCO Plans ₹1,500 Crore Perpetual Bond Issue Under ₹80,000 Cr FY26 Borrowing Plan

New Delhi: Housing and Urban Development Corporation Limited (HUDCO) has informed stock exchanges that it is moving ahead with a perpetual bond issuance of up to ₹1,500 crore as part of its enhanced borrowing programme for FY 2025–26, in compliance with SEBI Listing Regulations.

Earlier, the HUDCO Board had approved a fund-raising limit of ₹65,000 crore in its meeting held on April 4, 2025. Subsequently, at its meeting on January 29, 2026, the Board approved an enhancement of the annual borrowing programme to ₹80,000 crore, to be raised through multiple instruments including bonds and debentures.

Pursuant to this approval, the Bond Allotment Committee is scheduled to meet on February 13, 2026, to consider the issue and allotment of Perpetual, subordinated, listed, unsecured, taxable, rated, non-convertible debentures on a private placement basis.

Key Highlights of the Proposed Bond Issue:

Issue Size: Up to ₹500 crore with a green shoe option of ₹1,000 crore, aggregating to ₹1,500 crore
Instrument Type: Perpetual, subordinated, unsecured NCDs
Face Value: ₹1 crore per bond
Capital Treatment: Eligible for inclusion in Tier I and/or Tier II capital, as per RBI NBFC regulations
Tenor: Perpetual, with a call option after 10 years (subject to RBI approval)
Coupon: Fixed, to be discovered via BSE EBP platform, with a one-time step-up of 50 basis points if the call option is not exercised
Ratings:
- CARE Ratings – AAA (Stable)
- Acuité Ratings – AAA (Stable)

HUDCO stated that the proceeds from the issue will be utilized to augment long-term resources and support regular business activities, while strengthening its regulatory capital base.

The proposed debentures are expected to be listed on BSE within the stipulated timeframe following allotment, in accordance with applicable SEBI and RBI guidelines.