India's Housing and Urban Development Corp ( HUDCO) has received government approval to raise up to 50 billion rupees ($586.8 million) through a rarely used corporate bond structure.
HUDCO has until the end of March 2027 to raise funds via deep-discount zero-coupon bonds with a maturity of 10 years and one month, a government document dated April 17 showed.
Deep-discount bonds are generally issued at a more than 20%-25% discount to their face value and do not pay regular interest, a feature similar to zero-coupon notes that removes reinvestment risks.
HUDCO did not reply to a Reuters email seeking comment.
HUDCO becomes the second government entity in two months after Power Finance Corp (PFC), that has received such approval from the government.
In March, PFC got approval to raise 100 billion rupees through this instrument
HUDCO has until the end of March 2027 to raise funds via deep-discount zero-coupon bonds with a maturity of 10 years and one month, a government document dated April 17 showed.
Deep-discount bonds are generally issued at a more than 20%-25% discount to their face value and do not pay regular interest, a feature similar to zero-coupon notes that removes reinvestment risks.
HUDCO did not reply to a Reuters email seeking comment.
HUDCO becomes the second government entity in two months after Power Finance Corp (PFC), that has received such approval from the government.
In March, PFC got approval to raise 100 billion rupees through this instrument
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