HUDCO Plans Raising $400 Million In Yen Denominated Loans By March

Housing and Utban Development Corp., plans to raise around $400 million in Yen denominated funds to benefit from lower cost of borrowing in the Japanese market.

The Navratna infrastructure finance company is planning to optimise its cost of borrowings and in the last nine months has started exploring the route of external commercial borrowings (ECBs).

"We raised $540 million worth of Japanese Yen denominated funds between April and September 2024. Going ahead we are looking at raising additional $400 million in same currency before March-end," Sanjay Kulshreshtha, chairman and managing director of HUDCO told NDTV Profit in an interview.

The company secured the earlier round of funding at an interest rate of 6% and is hopeful of achieving the current round at maximum of 6.1-6.2%.

The housing and urban infrastructure development company also plans to increase its loan book to 1.5 lakh crore in FY26 and the target is to double it to Rs 3 lakh crore by 2030.

It also plans to take the borrowings to Rs 55,000 crore from Rs 40,000 crore planned earlier.

"We have been continually improving our financial metrics. The net non performing assets in Q3FY25 have improved to 0.27% YoY from 0.44% a year ago. This was possible because we managed to reach a resolution for Rs 1000 crore worth of NPA projects, " Kulshreshtha said.

The company has around Rs 2,200 crore worth of projects classified as NPA, out of which Rs 1,200 crore are in National Company Law Tribunals and the remaining under debt recovery tribunals, Kulshreshtha said.

The majority of these projects are in the power sector, and the company is hopeful that at least two to three will get resolved in the next two quarters.

The infrastructure finance company on Wednesday reported a 42% year-on-year increase in profit for the third quarter of financial year 2025 to Rs 735 crore on a revenue growth of 37% to Rs 2,760 crore.

The operating profit rose 34.1% on a yearly basis to Rs 925 crore from Rs 690 crore a year ago; however, the Ebitda margin dropped marginally to 33.5% versus 34.3% a year ago.