In order to provide long-term funds for housing and urban infrastructure projects, Housing and Urban Development Corporation (HUDCO) decided to raise a maximum of Rs 5,000 crore through issue of tax-free bonds.
The bonds, which are expected to hit the market in a few days, would be listed on the NSE. SBI Capital Markets, Enam Securities, ICICI Securities and Kotak Mahindra Capital Company are the lead managers to the issue.
The issue would open for the subscription on January 9 and closes on January 22. The face value of each bond is Rs 1,000.
The corporation offers a coupon rate of 8.01 per cent per annum for 15 years maturity period and 7.84 per cent for 10 years to retail investors. An investment up to Rs 10 lakh would qualify under retail category.
The corporation is offering 15 basis points more than other issuers which have recently launched their tax-free bonds, agency reports indicate.
The coupon rate for qualified institutional buyers (QIB), corporates, high net worth individuals has been fixed at 7.51 per cent per annum for 15 years and 7.34 per cent per annum.
The company posted a net profit of Rs 630.33 crore over a gross income of Rs 2,778.63 crore in 2011-12 fiscal.