Hudco Secures Approval for Zero-Coupon Bond Issuance

Housing and Urban Development Corporation Limited has received approval from the Central Board of Direct Taxes to issue zero-coupon bonds worth 5,000 crore rupees. This move is aimed at strengthening Hudco's financial position and supporting infrastructure development projects across the country.  

The approved issuance includes five lakh zero-coupon bonds with a tenure of ten years and one month. These bonds will be sold at a discount and will not carry periodic interest payments, with the full amount payable upon maturity. The structure allows Hudco to raise funds efficiently while offering investors a long-term financial instrument.  

The proceeds from the bond issuance will be exclusively allocated to infrastructure projects that can generate revenue independently, without relying on state government support for debt servicing. This aligns with Hudco's broader strategy of financing sustainable urban development initiatives.  

Key Developments:  
- Approval granted for the issuance of five lakh zero-coupon bonds, totaling 5,000 crore rupees.  
- Bonds will have a tenure of ten years and one month, with full payment upon maturity.  
- Funds will be directed toward infrastructure projects capable of self-sustained revenue generation.  

Sources: Central Board of Direct Taxes, Housing and Urban Development Corporation Limited.