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HUDCO looks to raise over USD 3 billion through RBI forex window, expects lower cost of funds

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HUDCO looks to raise over USD 3 billion through RBI forex window, expects lower cost of funds

HUDCO looks to raise over USD 3 billion through RBI forex window, expects lower cost of funds

Housing and Urban Development Corporation (HUDCO) has already raised USD 2 billion under the RBI’s concessional forex swap window and is targeting total mobilisation of slightly over USD 3 billion, as it looks to ease borrowing costs and protect margins amid elevated domestic funding rates.

HUDCO has raised USD 2 billion under the RBI window, with another set of loans tied up; it expects total mobilisation to exceed USD 3 billion.

The company raised its MCLR by 15 basis points after two years and expects around Rs 20,000 crore of loans to be reset in the second half of FY27.

HUDCO has sanctioned around Rs 9,000 crore of PPP projects, with disbursements yet to begin; it expects the first disbursement towards the Dharavi redevelopment project in Q3.

The lender expects negative credit costs to continue for another one to two years, supported by recoveries and provision reversals.

Housing and Urban Development Corporation ( HUDCO ) is looking to raise slightly over USD 3 billion through the Reserve Bank of India's (RBI) concessional forex swap window, as it seeks to lower its cost of funds and contain pressure on margins amid elevated borrowing rates in the domestic market. The state-owned housing finance and infrastructure lender which is also an upper layer NBFC has already raised USD 2 billion under the window, with additional loans tied up. The disbursements are expected to be completed before the window closes on December 31, 2026, HUDCO management said during its Q2 FY27 earnings call.


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