HUDCO mobilises Rs 1,748 cr through bonds issue
Sep 30 2013 , Chennai
"Our bonds have been assigned a rating of CARE AA+ by Credit Analysis and Research, while India Ratings and Research has assigned a rating of IND AA+ to the Bonds," K Subramanian, Senior Executive Director, HUDCO said here.
The bond issue hit the market on September 17 and will close on October 14. The issue size is Rs 750 crore with an option to retain over-subscription up to Rs 4,809.20 crore.
The Tranche I series 1 A and 1 B bonds; the Tranche I series 2 A and Tranche I series 2B Bonds and the Tranche I series 3 A Bonds and the Tranche I series 3 B Bonds can be redeemed after 10 years, 15 years and 20 years respectively from the deemed date of allotment.
"The funds raised through this issue will be utilised for lending and working capital requirements, augmenting the resource base of HUDCO and other operational requirements."
This is the first public issue of tax-free bonds by HUDCO this fiscal. The company had raised about Rs 2,400 crore during the last fiscal.
"As far as Tamil Nadu is concerned our operations are around Rs 1,500 crore per year. We have done many projects in Tamil Nadu and several water supply schemes, including in Vellore. Our contribution is highly appreciated by the Tamil Nadu government."
HUDCO, a mini-ratna firm, is a techno-financial institution engaged in the financing and promotion of housing and urban infrastructure projects throughout India.
The company posted a net profit of Rs 700 crore over a total revenue of Rs 2,923 crore during the last fiscal. It sanctioned projects worth Rs 23,000 crore and disbursed Rs 6,000 crore in 2012-13 fiscal.