Housing and Urban Development Corporation Ltd (HUDCO), a Navratna CPSE and NBFC–IFC, successfully raised Rs 1,905 crore through a 7-year bond issuance at a competitive coupon of 6.98 per cent on the SEBI-mandated electronic bidding platform, the corporation said on Thursday.
The achievement stands out as the broader market faced unexpected yield pressures.
Despite expectations of softer rates following the RBI’s recent monetary policy actions, including a 25 bps repo rate cut and announcement of Rs 1 lakh crore OMO purchases, corporate bond yields moved upward amid global uncertainties.
Reflecting this sentiment, two PSU issuers cancelled their planned bond issuances on 9th December after receiving levels that did not meet expectations.
Furthermore, on 10th December, secondary market trades for 7-year PSU papers were recorded at elevated levels of 7.08–7.10 per cent, underscoring the prevailing strain in the market.
“Against this backdrop, HUDCO’s ability to secure funding nearly 10 bps below secondary market levels underscores the company’s strong credit profile, investor confidence, and disciplined liability management,” HUDCO said in a statement.