Hudco aims to secure one billion dollars in foreign debt. This will be achieved through the Reserve Bank of India's concessional forex swap facility. The company is engaging with international entities for this fundraising. This move supports Hudc...
New Delhi: Housing and Urban Development Corporation (Hudco) plans to raise $1 billion (about ₹9,500 crore) foreign debt by utilising the Reserve Bank of India's concessional forex swap facility, chairman and managing director Sanjay Kulshrestha told ET.
Hudco is one of the first to disclose plans to raise funds under the forex swap facility that the RBI announced earlier this month. It allows banks and public sector undertakings to raise foreign debt and swap that with the central bank at a concessional rate. This facility, aimed at attracting foreign currency inflows and supporting the rupee, cuts the currency hedging cost for the borrowers, offering savings of 1-1.5%.
"We have tied up funding lines of approximately $1 billion, which may be accessed under the facility, subject to regulatory approvals and market conditions," Kulshrestha said. The company has already engaged with multiple entities in the US, Japan and the eurozone for raising the fund, he added.
"Recent policy initiatives by the Reserve Bank of India and the government have created a conducive environment for both domestic and overseas fundraising," he said.
Hudco plans to mobilise around ₹70,000 crore during the current financial year to support its lending and business growth requirements, against ₹67,503.22 crore it raised in fiscal 2026.
The organisation that provides long-term financing for housing and urban infrastructure projects had a loan book of ₹1.65 lakh crore as of end-March 2026.
Widening scope
Going beyond financing, Hudco has begun working with states for project planning and preparation. The lender is also helping urban local bodies promote climate-resilient infrastructure solutions, strengthen urban planning and support projects that enhance environmental sustainability.
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"We provide technical assistance, capacity building and advisory support for developing bankable, sustainable and implementation-ready projects through the Urban Invest Window (UiWIN) initiative," Kulshrestha said, adding there is an increasing focus on tier-2 and tier-3 cities, transit-oriented development, multimodal connectivity and planned urban expansion.
According to the Hudco chairman, there is a clear shift from grant-driven infrastructure creation towards financially sustainable and bankable projects with stronger revenue-generation potential and greater private sector participation.
