Hudco To Raise $1.3 Billion For Urban Projects

Housing and Urban Development Corporation Ltd (Hudco) plans to raise $1.3 billion through external commercial borrowings (ECB) in the next five months to fund urban infrastructure projects in the country.

The company, a techno-financing public sector enterprise, intends to raise up to $2 billion through ECB under the RBI concessional swap window available up to December 31, 2026.

According to Hudco Chairman and Managing Director Sanjay Kulshrestha, the company has already raised $700 million through External Commercial Borrowings this financial year. The remaining $1.3 billion would be raised in the next five months depending on funding requirements.

The Reserve Bank of India (RBI) opened a special US Dollar-Rupee forex swap window in June to give cheap currency hedging support to public sector undertakings (PSUs) raising External Commercial Borrowings (ECBs).

Last year, Hudco raised about $700 million through the ECB in Japanese Yen. This year, the company is planning to raise the ECB in US dollars along with Yen.

The ECB borrowing so far has come at the interest rate of 6.25 per cent per annum.

Talking about the fund-raising plan for FY27, Kulshrestha said Hudco would be raising about Rs 75,000 crore this year. Of this, the firm has already mobilised Rs 20,000 crore, including ECB, so far.

Hudco reported a 35 per cent jump in net profit to Rs 851 crore in the first quarter ended June 2026. The state-owned company had earned a net profit of Rs 630 crore in the year-ago period.

The company's total income rose to Rs 3,737 crore in the first quarter of this fiscal year from Rs 2,945 crore in the corresponding period of the preceding year.

The company has made provisions on loans (impairment) based on the expected credit loss (ECL) method amounting to Rs 621 crore as on June 30, 2026.

During the period, the company has raised funds amounting to Rs 2,140 crore through the issuance of listed non-convertible debt securities on a private placement basis.

The funding raised by Hudco will be used to support urban infrastructure projects in the country, which is expected to benefit the overall development of the urban sector.

In terms of significance, the funding raised by Hudco will contribute to the growth and development of urban infrastructure in India, which is a key focus area for the government.

The urban infrastructure sector is expected to see significant growth in the coming years, driven by government initiatives and investments in this sector.

The funding raised by Hudco will play a crucial role in supporting this growth and development, and is expected to have a positive impact on the overall economy,