By Accommodation Times News Service
The Housing and Urban Development Corporation (HUDCO) has joined Rural Electrification Corporation (REC) Power Finance Corporation (PFC) and India Infrastructure Finance Company (IIFCL) in raising money from tax frees bond issuance by this financial year.
HUDCO has filed the draft prospectus with Sebi for tax free bonds aggregating Rs.5, 000 crore through a public issue. HUDCO which is wholly owned Government Company engaged in the financing and promoting housing and urban infrastructure project throughout India. The other organization like PFC and IIFCL also filed the draft prospectus with Sebi last week for tax free bonds. In total these government owned body have so far announced tax free bond issuance worth Rs 25,000 crore in this FY 13.
This is financial year government plans to raise Rs 60,000 crore through tax free bonds against Rs. 30,000 crore raised in FY12. HUDCO proposed bonds have been assigned AA rating by CARE and India Rating & Research for the 10 years and 15 years bond issuance against AAA ratings agencies – Crisil, CARE, India Ratings and ICRA.