This move is aimed at bolstering the company’s capacity to finance various infrastructure projects across the country.
As per an official notification, HUDCO has been permitted to issue five lakh zero coupon bonds with a tenure of 10 years and one month. The amount will be paid to the bondholders upon maturity. The bonds are planned to be issued on or before March 31, 2027. The zero coupon bonds will be issued with a discount of Rs. ₹2,351.49 crores.
The proceeds from the issuance of these bonds will only be used for funding infrastructure projects that can service the debt out of the project revenues without being dependent on the state government for services of debt, the company said.
The notification also clarifies that “infrastructure” encompasses all sub-sectors as defined by the Department of Economic Affairs, Ministry of Finance, including any amendments or additions made to the Harmonised Master List of Infrastructure sub-sectors.
HUDCO shares were trading 1.38% higher at ₹232 apiece at 12.15 pm on Monday, April 21. The stock has gained 14.4% in the past month.
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