Hudco’s tax-free bond issue to open on Dec 2  
     
  Housing and Urban Development Corporation Ltd (HUDCO) will launch its second and final tranche of tax free bonds issue on December 2.  
     
  The base issue size of this public issue will be Rs 500 crore with an option to retain subscription up to the shelf limit of Rs 2,439.20 crore.  
     
  HUDCO had in the earlier first tranche (launched in September) of public issue of tax free bonds raised Rs 2,370 crore.  
     
  Besides the Rs 2,370 crore, it had also mopped up Rs 191 crore through private placement of tax free bonds, a senior HUDCO official said.  
     
  The Central Board of Direct Taxes had allowed HUDCO to raise Rs 5,000 crore through tax free bonds this fiscal.  
     
  For the second tranche, the coupon rate has been pegged at 8.76 per cent, 8.83 per cent and 9.01 per cent for tenors of 10 years, 15 years and 20 years respectively.  
     
  The coupon of 8.76 per cent for the 10-year tax free bond is perhaps the highest offered by any issuer so far this fiscal, industry sources said.  
     
  HUDCO had offered a coupon of 8.51 per cent for a 10-year tax free bond in the first tranche.  
     
  The coupon rates offered in the second tranche are substantially higher in the case of 10 years and 20 year bonds as compared to the previous tranche.  
     
  There has also been a marginal increase in the coupon rate on the 15-year bond.  
     
  The coupon rates have inched up to 8.83 per cent in the second tranche from a level of 8.76 per cent offered in the first tranche for a 15-year bond.  
     
 
     
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