A termsheet seen by Reuters indicated that India's HUDCO had planned on raising INR12.5 billion through the private placement of tax-free bonds. The termsheet also showed that the firm plans to issue 10-year bonds at 8.11%, 15-year bonds at 8.56%, and 20-year bonds at 8.47%. Proceeds from the bonds sale would be put to use for lending purposes, working capital requirements, and augmenting the resource base.

AA+ by CARE and India Ratings provided the ratings for the bond issue. The base size of the bond sale is 1 billion rupees. Opening and closing of the books for the issue was scheduled on Tuesday.

HUDCO is a premier techno-financing company set up by the Government of India. Its goal is to accelerate the pace of housing and urban development in the country. HUDCO also offers consultancy services, promotes research and studies, and helps propagate the use of local building materials, cost-effective, and innovative construction technologies. It is a Public Sector Company under the Ministry of Housing & Urban Poverty Alleviation (MoHUPA).