HUDCO Tax Free Bonds


Housing and Urban Development Corporation Limited (HUDCO)

The issue opens on January 27′ 2012 and ends on February 6′ 2012.

Profile

Housing and Urban Development Corporation Ltd (HUDCO) was established in 1970 as a wholly owned Government company with the objective to provide long term finance and undertake housing and urban infrastructure development programmes. HUDCO’s sustained performance and profitability earned them Mini-Ratna status conferred in FY 05. HUDCO had sanctioned loans of Rs. 37,464 cr for housing and Rs. 84,906 cr for urban infrastructure on a cumulative basis up to Dec 2011.

Salient features of the bond issue

  • The Bonds are issued in the form of tax-free, secured, redeemable, non-convertible bonds and the interest on the Bonds will not form part of the total income.
  • In case of over-subscription; allotment shall be on first cum first serve basis up to the date falling 1 day prior to the date of oversubscription and on proportionate basis on the date of oversubscription.
  • Credit rating agency CARE has rated the bonds “CARE AA+” & FITCH has rated the bonds “Fitch AA+ (ind)”. Instruments with this rating are considered to have the high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
  • The bonds are fully secured by way of floating first pari passu charge on the present and future receivables of the company to the extent of amount mobilized under the issue. The security cover is 1.0 times of the outstanding Bonds at any point in time.
  • The Bonds bear an attractive coupon rate; 8.10% p.a. for Tranche 1 Series 1 (bonds maturing after 10 years) and 8.20% p.a. for Tranche 1 Series 2 (bonds maturing after 15 years). (Tax free). Additional Coupon Rate for Category III Investors: 0.12% p.a.  Additional Coupon Rate for Category III Investors: 0.15% p.a.
  • HUDCO shall pay 8% p.a. for Tranche 1 Bonds as interest on the Application amount retained.
  • HUDCO shall also pay 4% p.a. on refund of application amount. Such interest shall be paid along with the monies liable to be refunded.
  • Issuance will be in DEMAT as well as PHYSICAL form. The bonds will be listed on both BSE and NSE; facilitating trading of these bonds.
  • Investors can pledge or hypothecate these bonds to avail loans.
  • Allotment on first come first serve basis.
  • Cheque in favour of   ‘HUDCO Tax Free Bonds- Escrow Account’

Investment Series

Options

Tranche I Series 1

Tranche I Series 2

Frequency of Interest Payment

Annual

Tenor

10 Years

15 Years

Face Value per Bond

Rs 1000/-

Minimum Application

10 Bonds i.e. Rs. 10,000

In multiples of

1 Bond i.e. Rs. 1,000

Coupon Rate (%) p.a.

8.10%

8.20%

Additional Coupon Rate (%) p.a. for Category III #

0.12%

0.15%

Aggregate Coupon Rate (%) p.a. for Category III

8.22%

8.35%

Redemption Date

10 Years from the Deemed Date of Allotment

15 Years from the Deemed Date of Allotment

Redemption amount (Rs / Bond)

Repayment of the Face Value plus any interest that may have accrued at the

Redemption Date

Deemed Date of Allotment

The date on which the Board or a duly constituted committee thereof approves the Allotment of the Bonds for this Issue. All benefits relating to the Bonds including interest on Bonds (as specified in this Prospectus Tranche- I) shall be available to the investors from the Deemed Date of Allotment. The actual allotment of Bonds may take place on a date other than the Deemed Date of Allotment.

For More Details check out the link below:

HUDCO – Term Sheet

Click here to Download Application Form

Important: You must write application number before submitting the application, click here for application number

Note: Please keep the photo copy of duly filled application form with you for your records, in case you did not receive the information about allotment in 45 days then you can contact at contactcorpus@gmail.com, Please keep the acknowledge Slip with you.

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