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Informist, Friday, May 22, 2026

 

--Official: HUDCO to raise $700 mln via yen-denominated 5-yr bonds in Apr-Jun 

 

By Kabir Sharma 

 

MUMBAI – Housing and Urban Development Corp. Ltd. plans to raise up to $700 million through yen-denominated bonds in the quarter ending June, an official aware of the fundraising plans told Informist. The financier plans to raise the funds through five-year bonds. 

 

"We will surely raise this quarter, we prefer yen-denominated because it is comparatively safer," the official said. "We will raise for five years, we don't want to raise any long-term liability," he said. The official did not give any estimates for the interest rate the company expects to pay for the fundraising. 

 

No companies have raised funds through external commercial borrowing so far this financial year. 

 

The move comes as Indian issuers face elevated hedging costs and tight pricing for dollar-denominated bonds amid global rate hike expectations. The Japanese yen market offers lower coupon rates and deeper investor appetite for highly rated Indian public sector entities, dealers said.

 

Housing and Urban Development Corp. Ltd. showed a diversified borrowing profile for FY26, with its total outstanding borrowings rising sharply compared to the previous fiscal year, according to the company's invetsor presentation. Foreign currency loans also witnessed an increase. External commercial borrowing and official development assistance loans stood at INR 124.76 billion in FY26, compared with INR 70.64 billion the previous year. 

 

Among bank loans, short-term borrowings fell to INR 25.04 billion from INR 45.57 billion the previous year. However, mid-term bank loans rose sharply to INR 599.67 billion in FY26 from INR 394.18 billion in FY25.

 

The state-owned company's net profit for the March quarter surged over 172% on year to INR 19.81 billion. Sequentially, the bottom line rose nearly 178%.

 

At 1356 IST, shares of the company were 0.2% lower at INR 205.80 on the National Stock Exchange.  End

 

US$1 = INR 95.77

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

With inputs from Vaishali Tyagi

Edited by Avishek Dutta

 

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