Ireda, Hudco to raise Rs 1,949 cr via tax-free bonds
Two state-owned companies, Indian Renewable Energy Development Agency (Ireda) and Housing and Urban Development Corporation (Hudco) are planning to raise a total of R1,949 crore by placing out tax-free bonds to institutional investors on Tuesday, according to information provided by bond market sources.
“Ireda plans to raise up to R600 crore while Hudco aims to raise R1,349 crore through a private placement of tax-free bonds— both with a maturity of 10 years,” a source said adding that bidding will be held on Tuesday.
Ireda was allotted a total limit of R2,000 crore of which 70% has to be raised through a public issue of debt while the rest—in this case R600 crore—could be raised through the private-placement route, according to a government notification.
Most other companies that have been permitted to issue tax-free bonds this fiscal have already tapped the private-placement route at least once so far and are now approaching the market with their public issues. In the case of Hudco, the company had reportedly raised R151 crore a few weeks back through the private-placement route according to bond arrangers close to the development. It had been allotted a limit of R5,000 crore on tax-free bonds out of which R1,500 crore could be raised through the private placement route.