HUDCO seeks dollar loans and explores international markets

Housing & Urban Development Corporation Ltd (HUDCO) is actively seeking new sources for international loans. The company has raised about ₹5,360 crore in Japanese Yen loans this fiscal year. These loans have a five-year term with an interest rate of 5.54%. Sanjay Kulshrestha, the Chairman and Managing Director of HUDCO, stated that the company is exploring opportunities in other regions. They are considering dollar and Euro-denominated loans as part of their strategy to secure low-cost funding. Kulshrestha mentioned a new loan agreement for 80 billion Japanese Yen has already been negotiated. HUDCO is also planning to potentially raise funds through dollar-denominated bonds by the third quarter of the next fiscal year. This timeline, however, is subject to change based on interest rate decisions by the U.S. Federal Reserve. Recently, HUDCO signed an agreement with the Andhra Pradesh Capital Region Development Authority to lend ₹11,000 crore for the development of Amravati's new capital city. The total development cost for housing and infrastructure in the area is estimated at ₹67,000 crore. The project will be completed in two phases, with the first phase estimated to cost around ₹29,194.81 crore. Currently, HUDCO's loan portfolio stands at ₹1.18 trillion. The company aims to increase its lending to ₹3 trillion by 2030 to support the growing demand for affordable housing and infrastructure projects.