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Monday, Feb 25, 2002

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HUDCO plans second tranche of Gujarat bonds

Anand Krishnamoorthy

NEW DELHI, Feb. 24

HOUSING & Urban Development Corp Ltd (HUDCO) is likely to float the second tranche of the Gujarat Punar Nirman Bonds in March following the success of the first edition, the Chairman and Managing Director, Mr V. Suresh, said.

HUDCO, which raised Rs 231 crore against an issue size of Rs 100 crore from the last edition of the special tax-free bond, is yet to finalise the size of the issue for its second tranche.

In the previous round, HUDCO had floated three bonds — a five-year bond with 8.5 per cent coupon, a 7-year bond with 8.75 per cent coupon, and a 10-year bond with 9.25 per cent coupon.

"We will decide on the size and the instruments depending upon the deployment (of the first tranche) and the future needs,'' Mr Suresh told Business Line.

HUDCO has so far borrowed Rs 1,148 crore through bonds in this financial year. It has now floated non-convertible debentures worth Rs 300 crore, which close on February 28. The debentures include Rs 100 crore of priority sector bonds with a green shoe option offering 9 per cent for a five-year tenure, 9.25 per cent for a 7-year tenure and 9.75 per cent for a 10-year tenure.

Taxable non-priority sector bonds worth Rs 200 crore are also in the offing with a 9.25 per cent coupon on a five-year tenure, 9.60 per cent for a 7-year tenure and 10 per cent coupon on a 10-year paper.

The issue, with UTI Bank as the arranger, is rated AA+ (read AA Plus) by CARE. These are the 22nd and 23rd offerings by HUDCO this year.

HUDCO has disbursed Rs 3,248 crore so far this financial year, half of which went towards the housing sector (including loans to retail housing) and the other half towards infrastructure lending.

It is aiming to disburse about Rs 5,000 crore in the coming financial year, against a sanction of about Rs 9,000 crore, Mr Suresh said.

In the Tenth Plan period (2002-07), HUDCO intends to disburse Rs 41,395 crore loans against a sanction of Rs 61,990 crore.

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