HUDCO AIMS TO RAISE AT LEAST 7.5B RUPEES SELLING TAX-FREE BONDS

     (The following and attached press release from Housing and Urban 
Development Corp. was received by e-mail. It was not confirmed by the sender.) 
(This press release is for information purpose only and is not a prospectus
announcement) PRESS RELEASE (NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE 
OUTSIDE INDIA) 
*Housing and Urban Development Corporation Limited * 
*offers Tax Free Bonds *
*Issue to open on January 9, 2013*
*Aggregating upto Rs 750 crore with option to retain subscription upto Rs
5,000 crore* 
- Public Issue of Tax Free bonds in the nature of Secured, Redeemable, Non 
Convertible Debentures by the Company under Section 10(15)(iv)(h) of Income Tax 
Act, 1961 – Tranche - I Bonds
- Bonds to aggregate upto Rs 750 crore; with option to retain oversubscription 
upto shelf limit of Rs 5,000 crore.
- Coupon rate of 7.34% for Series 1 Bonds and 7.51% for Series 2 Bonds on per 
annum basis; Additional interest at the rate of 0.50% per annum shall be 
available to the original Allottees under Category IV of investors i.e. retail 
individual investors investing upto Rs. 10 lacs shall be entitled to Coupon @ 
7.84% for 10 years and 8.01% for 15 years. ****
- Credit rating of ‘CARE AA+’ by CARE and ‘IND AA+’ by India Ratings and 
Research Private Limited, to the Bonds.
- The Issue will *open on January 9, 2013*, and will close on January 22, 2013
- The Bonds proposed to be listed on The National Stock Exchange of India Ltd.
- Option to hold Tranche 1 Bonds in either physical or demat form.
- NRIs and FIIs are eligible to participate in the Issue. 
*Mumbai, January 4, 2013:* Housing and Urban Development Corporation
Limited (*“COMPANY” or the “ISSUER”*) is issuing Tax Free Bonds with a Face
Value of Rs 1000 each in the nature of Secured, Redeemable, Non-Convertible
Debentures having benefits under Section 10(15)(iv)(h) of the Income Tax
Act, 1961, as amended *(“BONDS”) *to aggregate amount upto Rs 750 crore
with an option to retain an oversubscription of up to Rs 5,000 crore (“*Shelf
Limit*”). 
The minimum subscription is five (5) Bonds across all of the Series of
Bonds and in multiples of one (1) Bond thereafter. The Issue will open on
January 9, 2013 and will close on January 22, 2013.  
The Bonds have been assigned Credit rating of ‘CARE AA+’ by CARE and ‘IND
AA+’ by India Ratings and Research Private Limited (IRRPL), indicating
high degree of safety regarding timely servicing of financial obligations
and carrying very low credit risk. 
The Tranche 1 – Series 1 and Tranche 1 - Series 2 Bonds will be redeemed
after ten (10) years and fifteen (15) years respectively from the deemed date 
of allotment. The Bonds will be issued in both physical and dematerialized 
form. The Issue Price for both the Series is ` 1,000 per bond.  
There are 4 categories of investors who can apply in the issue – Category
I, Category II, Category III and Category IV. Category I includes public
financial institutions, scheduled commercial banks, multilateral and
bilateral development financial institutions, State industrial development
corporations, FIIs and their sub-accounts registered with SEBI, Provident
funds and pension funds with minimum corpus of Rs 25 crore, Insurance
companies, National Investment fund, Insurance funds set up and managed by
army, navy or air force of the Union of India or set up and managed by the
Department of Posts, Mutual Funds and Alternative Investment Funds.
Category II will include Companies, and bodies corporate authorized to
invest in Bonds. Category III will include Resident Indian individuals,
Eligible NRIs on a repatriation or non – repatriation basis and Hindu
Undivided Families applying for an amount aggregating to above Rs 10 lakh
across all series in the Issue. Category IV will include resident Indian
individuals, Eligible NRIs on a repatriation or non – repatriation basis
and HUFs applying for an amount aggregating upto and including Rs 10 lakh
across all series of Bonds in this Issue. 
In the case of Series 1 of the Bonds, the coupon rate is 7.34% payable
annually and in the case of Series 2, the coupon rate is 7.51% payable
annually from, and including, the Deemed Date of Allotment up to, but
excluding, their respective Maturity Dates. The annualized yield for
Category I, II, and III for Series 1 is 7.34% while that for Series II is
7.51%. Additional interest at the rate of 0.50% per annum shall be
available to the original Allottees under Category IV for the Tranche-I
Series 1 Bonds and Tranche-I Series 2 Bonds respectively, which will result
in an annualized yield of 7.84% and 8.01% respectively per annum. However,
if the original Category IV allottees sell/transfer the bonds held (except
in case of transfer of Bonds to legal heir in the event of death of the
original Allottee), the coupon rate shall stand revised to the coupon rate
applicable for Allottees falling under Category I, Category II and Category
III. 
The Company intends to utilize the Issue Proceeds for lending purposes,
working capital requirements, augmenting the resource base of our Company
and other operational requirements (including debt servicing, statutory
payments, establishment and administrative purposes and other working
capital requirements). Not more than 10% of the Overall Issue Size will be
allocated to Investors who are FIIs (Category I) and Eligible NRIs
(Categories III and IV). However, all subscription monies received from
FIIs, Eligible NRIs (and other non resident Applicants across all
Categories) through the Issue will be kept in a separate account opened and
maintained by the Company, the proceeds of which account shall not be
utilised for any lending purposes, and shall be utilized for the following
purposes:
(a) Debt servicing, which includes servicing of both the principal amounts
as well as interest payments of various debt facilities availed by the
Company in the past and currently outstanding in its books of accounts,
including loans, market borrowings (which include our non-convertible
bonds/ debentures); 
(b) Statutory payments; **** 
(c) Establishment and administrative expenses; and **** 
(d) Other working capital requirements of the Company. 
The Lead Managers to the Issue are Enam Securities Private Limited (the
merchant banking business of Enam Securities Private Limited has vested
with Axis Capital Limited, which is in the process of completing the
formalities of its SEBI registration), ICICI Securities Limited, Kotak
Mahindra Capital Company Limited and SBI Capital Markets Limited. The
Debenture Trustee for the Bondholders is SBICap Trustee Company Limited.****
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*Disclaimer:* 
*Housing and Urban Development Corporation Limited ( “Company”), is
proposing, a public issue (“Issue”) of tax free bonds of face value of Rs.
1,000 each in the nature of secured, redeemable, nonconvertible debentures,
having benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, as
amended (“Bonds”) and has filed a Shelf Prospectus dated December 13, 2012
and a Prospectus Tranche – I dated December 13, 2012 (the Shelf Prospectus
and the Prospectus Tranche - I referred to as “Prospectus”) with the
Registrar of Companies, National Capital Territory of Delhi & Haryana, the
National Stock Exchange of India Limited (“NSE”) which is the Designated
Stock Exchange for the Issue and the Securities and Exchange Board of India
(“SEBI”). The issue size under the Prospectus Tranche – I aggregates to Rs
750.00 crore with an option to retain over subscription up to the Shelf
Limit (i.e. Rs. 5,000.00 crore). The Prospectus is available on the website
of NSE at www.nseindia.com, SEBI at www.sebi.gov.in, the Company at
www.hudco.org and the websites of the Lead Managers at www.enam.com,
www.icicisecurities.com, www.investmentbank.kotak.com  and www.sbicaps.com.
Investors are advised to take any decision to invest in the Bonds pursuant
to their examination of the Company and on the basis of disclosures made in
the Prospectus. Please see the section entitled “Risk Factors” beginning on
page 9 of the Shelf Prospectus for risks in this regard.* 
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