Hudco Enters Syndicated Loan Market With $200 Million Financing

Housing and Urban Development Corp. has secured a $200 million loan from a group of lenders, marking its first significant entry into the syndicated loan market, according to a statement on Tuesday. The loan was arranged by Sumitomo Mitsui Banking Corp. Singapore branch, which served as the sole mandated lead arranger, bookrunner, and social loan coordinator.

The transaction was oversubscribed, with nine lenders participating. The loan amount was increased from the original 15 billion Japanese yen to 30 billion Japanese yen after exercising the greenshoe option.

This social loan aligns with the state-run housing and infrastructure developer's mission to finance the housing and infrastructure sectors. The funds will support the expansion of its social housing platform, aiming to improve the quality of life for the Indian community and enhance urban infrastructure facilities.

SMBC collaborated with Hudco to develop a social loan framework in accordance with international sustainable finance standards set by the Loan Market Association, Asia Pacific Loan Market Association, and Syndications and Trading Association.

Sanjay Kulshreshta, chairperson of Hudco, mentioned that the government’s focus on infrastructure-led growth is expected to increase demand for Hudco’s services. The infrastructure outlay aligns with Hudco’s mission to support the creation of sustainable and resilient infrastructure in line with the Government of India’s Viksit Bharat 2047 vision, Kulshreshta said.

Shares of Hudco fell 0.69% to Rs 280.60 apiece, as of 2:48 p.m. That compares to 0.3% gain in the country's equity benchmark NSE Nifty 50.