HUDCO raises $200 million in inaugural social loan from Japanese market

Housing and Urban Development Corporation (HUDCO) has successfully raised $200 million (JPY 30 billion) in its first foray into the syndicated loan market. The state-run body secured the five-year loan as part of its inaugural “social loan,” arranged by Japan’s Sumitomo Mitsui Banking Corporation (SMBC).

The deal, led by SMBC’s Singapore branch, was oversubscribed and expanded from its initial size of JPY 15 billion to JPY 30 billion after exercising the greenshoe option. Nine lenders participated in the loan.

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The funds from this social loan will help HUDCO expand its social housing platform to improve the quality of life for Indian communities and enhance urban infrastructure.

Hiroyuki Mesaki, country head of SMBC India, expressed enthusiasm for expanding support to underserved communities. SMBC India’s chief business officer, Rakesh Garg, highlighted that this financing sets new benchmarks and opens opportunities for more Indian companies in the Japanese Yen loan markets.

HUDCO’s chairman and managing director, Sanjay Kulshreshta, noted the expected surge in demand for HUDCO’s services due to the government’s focus on infrastructure-led growth. He emphasized that the deal helps diversify the resource base and optimize costs.