HUDCO Tax Free Bonds-Secured Redeemable Non-Convertible

HUDCO Tax Free Bonds (17th September 2013 till 14th October 2013)hudco tax free bonds - HUDCO Logo

Housing and Urban Development Corporation Limited (HUDCO) is offering Public Issue of Tax Free Secured Redeemable Non-Convertible Bonds. The issue will be open from 17-09-2013 to 14-10-2013.  Early closing option can be exercised by giving atleast one day public notification.

Some of the key points of the issue

 Issue SizeRs.750 Crores with an option to retain oversubscription of up to Rs.4809.20 Crore
Min Application SizeRs.5,000/-( 5 Bonds )
Thereafter in multiples ofRs.1000/-( 1 Bond )
Credit Rating“AA+” from CARE & IRRPL ( formerly known as Fitch Rating India Pvt Ltd )
Issuance of BondsThe Allotment of the Bonds will be in a dematerialised form as well as physical form
TradingIn dematerialised form only
CategoryI – Institutions( QIB )II – Non Institutions( Corporate )III – (Individual ) -HNIIV – ( Individual ) –Retail
Category Allocation10% of the overall Issue Size.20% of the overall Issue Size.30% of the overall Issue Size.(Above Rs.10 Lakhs)40% of the overall Issue Size. ( upto Rs.10 Lakhs)
Tenor10 Years15 Years20 Years
Interest FrequencyAnnualAnnualAnnual
Coupon Rate / Effective Yield- for Category I, II, III Applicants (% p.a)8.14%8.51%8.49%
Coupon Rate / Effective Yield for Category IV applicants8.39%8.76%8.74%

Redemption Amount is payable as Repayment of the face value along with any interest (at the applicable interest rates) that may have accrued at the Redemption Date.  This issue of HUDCO Tax free Bonds is proposed to listed on Bombay Stock Exchange (BSE).

Four categories of people can apply for this HUDCO Tax Free Bonds which are Secured Redeemable Non-Convertible Bonds.

Category I (Institutions):

Public Financial Institutions, scheduled commercial banks, multilateral and bilateral development financial institutions, state industrial development corporations, which are authorised to invest in the Bonds; 

provident funds and pension funds with minimum corpus of Rs. 25 crores, which are authorised to invest in the Bonds; 

Insurance companies registered with the IRDA; 

Foreign Institutional Investors and sub-accounts (other than a sub account which is a foreign corporate or foreign individual) registered with SEBI, including Sovereign Wealth Funds, Pension and Gratuity Funds registered with SEBI as Foreign Institutional Investors; 

National Investment Fund (set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India and published in the Gazette of India); 

Insurance funds set up and managed by the army, navy or air force of the Union of India or set up and managed by the Department of Posts, India; 

Mutual funds registered with SEBI; and 

Alternative Investment Funds, subject to investment conditions applicable to them under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. 

Category II ( Corporates ) :

Companies within the meaning of section 3 of the Companies Act*; 
Statutory bodies/corporations*; 
Cooperative banks; 
Public/ private/ religious trusts; 
Limited Liability Partnerships; 
Eligible QFIs (not being individuals); 
Regional rural banks; 
Societies registered under applicable laws in India and authorised to invest in the Bonds; 
Associations of persons; 
Partnership firms in the name of partners; and 
Any other foreign/ domestic legal entities/ persons as may be permissible under the CBDT Notification and authorised to invest in the Bonds in terms of applicable laws. 

Category III ( HNIs ) ( High Networth Individual Investors):

The following Investors applying for an amount aggregating to above Rs.10 lakhs across all Series of Bonds in thisTranche Issue:
Resident Indian individuals;
Eligible NRIs on a repatriation or non – repatriation basis; Hindu Undivided Families through the Karta; and
Eligible QFIs, being individuals.

Category IV (RIIs ) ( Retail Individual Investors):

The following Investors applying for an amount aggregating upto and including Rs.10 lakhs across all Series of Bonds in thisTranche Issue:

Resident Indian individuals;
Eligible NRIs on a repatriation or non – repatriation basis; Hindu Undivided Families through the Karta; and
Eligible QFIs, being individuals.

Cheque /DD to be drawn as below

The payment instruments from the resident Applicants shall be payable into the Escrow Account drawn in favour of “HUDCO Tax Free Bonds 2013-14 – Escrow Account -R”.

The payment instruments from eligible Non Resident Applicants including NRIs on repatriable and non repatriable basis, FIIs and SWFs shall be payable in the Non Resident Escrow Accounts drawn in favour of:

If on Repatriation basis: “HUDCO Tax Free Bonds 2013-14 – Escrow Account – NR Repat”.

If on Non Repatriation basis: “HUDCO Tax Free Bonds 2013-14 – Escrow Account – NR Non-Repat”.

Application will be rejected if banked without uploading in the electronic system of the recognised stock exchanges.

How to download HUDCO Tax Free Bonds Prospectus and applications

Visit Hudco website

 http://www.hudco.org/Site/FormTemplete/FrmtaxfreebondProspectus.aspx  and click the desired pdf link. After accepting the disclaimer one can download the HUDCO Tax free bonds Shelf prospects and Trenche Prospectus.

If you are interested in applying for these HUDCO Tax Free Bonds, Please contact for more details and applications.