HUDCO Tax Free Bonds 2013

HUDCO Tax Free Bonds 2013

Housing and Urban Development Corporation’s HUDCO Taxfree bond issue will open shortly for  subscription on September 17.

The core issue size will be Rs 750 crore.

This issue will offer coupon rate of 8.14%, 8.51% and 8.49% for bonds with tenure of 10-year, 15-year and 20-year respectively.

Retail applicants will get 25 basis points higher coupon in all three tenures. (less than 10 Lakhs). Hence this will be 8.39%, 8.76% and 8.74%.

Hudco has a credit rating of AA+, one notch lower than REC’s AAA.

The last day of the offering will be October 14, however, the issue could be closed since they are allotted first cum first serve basis.

Term sheet

Link to Prospectus

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