Hudco intends to raise $1.3b via ECB to fund urban infra

Housing and Urban Development Corporation Ltd (Hudco) on Tuesday said it plans to raise $1.3 billion via external commercial borrowings (ECB) in the next five months to fund urban infra in the country.

Hudco, a techno-financing public sector enterprise in the field of housing and infrastructure development, intends to raise up to $2 billion through ECB under the RBI concessional swap window available up to December 31, 2026.

“So, far we have raised $700 million through External Commercial Borrowings this financial year. Remaining $1.3 billion would be raised in the next five months depending on funding requirement,” Hudco Chairman and Managing Director Sanjay Kulshrestha said.

The Reserve Bank of India (RBI) in June opened a special US Dollar-Rupee forex swap window to give cheap currency hedging support to public sector undertakings (PSUs) raising External Commercial Borrowings (ECBs).

Last year, the financial institution had raised about USD 700 million through the ECB in Japanese Yen.

This year, Hudco is planning to raise the ECB in US dollars along with Yen, he said, adding borrowing in dollar terms would be first for the company.

ECB borrowing so far has come at the interest rate of 6.25 per cent per annum, he said.

Talking about the fund-raising plan for FY27, Kulshrestha said Hudco would be raising about Rs 75,000 crore this year.

Of this, he said, the firm has already mobilised Rs 20,000 crore, including ECB, so far.

Hudco on Monday reported a 35 per cent jump in net profit to Rs 851 crore in the first quarter ended June 2026.

The state-owned company had earned a net profit of Rs 630 crore in the year-ago period.

The company’s total income rose to Rs 3,737 crore in the first quarter of this fiscal year from Rs 2,945 crore in the corresponding period of the preceding year.

The company has made provisions on loans (impairment) based on the expected credit loss (ECL) method amounting to Rs 621 crore as on June 30, 2026 (compared to Rs 1702.89 crore as on June 30, 2025), it said.

During the period, the company has raised funds amounting to Rs 2,140 crore through the issuance of listed non-convertible debt securities on a private placement basis.