HUDCO Defies Bond Market Volatility With Tight 7-Year Raise

has raised ₹1,905 crore via a 7-year bond at a 6.98% coupon, pricing its paper nearly 10 bps inside prevailing secondary market levels of 7.08–7.10% for comparable PSU issuers. The outcome stands out given that two other PSUs scrapped planned issuances this week after investors demanded higher yields amid a sudden spike in market rates.​ The deal effectively shows that the recent 25-bps repo rate cut and the RBI’s ₹1 lakh crore OMO purchase plan have not yet translated into uniformly easier borrowing conditions for corporates. Global uncertainty and position unwinding have instead pushed corporate bond yields higher, forcing weaker names to stay on the sidelines while stronger credits like HUDCO still clear the market.​ For HUDCO, locking in 7-year money sub-7% enhances its liability profile and provides a funding edge as it finances long-gestation urban and housing infrastructure. The successful book also signals that investors are willing to differentiate within PSUs, rewarding entities with stronger perceived asset quality, sovereign linkages and disciplined liability management. Source: The Economic Times No Recommendations