What is Hudco's plan to fund infrastructure projects in India?

Hudco, a state-owned infrastructure financing institution, is in advanced discussions with multilateral development banks like ADB and AIIB, as well as Germany's KfW, to raise a total of $1 billion to fund infrastructure projects in the country.

How will the foreign funding benefit Hudco?

The foreign funding will not only diversify Hudco's resource-raising stream but also help lower the cost of funds for the company. Hudco is also authorized to issue 54 EC Capital Gain Bonds to further improve its cost efficiencies.

What is the current financial performance of Hudco?

In the first half of the 2025 financial year, Hudco's loan sanctions increased by 22% to ₹92,985 crore, while loan disbursements rose to ₹25,838 crore. The company has also been focused on maintaining a healthy asset quality, with its gross NPAs declining to 1.21% and net NPAs falling to 0.07% as of September 2025.

Home / Business and Economy / Hudco Secures $1 Billion in Foreign Funding for Infrastructure Projects

Hudco Secures $1 Billion in Foreign Funding for Infrastructure Projects

16 Nov

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Summary

Hudco in talks with ADB, AIIB, and KfW to raise $1 billion
Aims to finalize fundraising by end of current fiscal year
Diversifying funding sources to lower cost of funds

Hudco Secures $1 Billion in Foreign Funding for Infrastructure Projects

Housing and Urban Development Corporation Ltd (Hudco), a state-owned infrastructure financing institution, is currently in talks with multilateral development banks and institutions to mobilize $1 billion to fund infrastructure projects in India. The company's Chairman and Managing Director, Sanjay Kulshreshta, revealed that Hudco is in advanced discussions with Germany's state-owned development bank, KfW, to raise $200 million.

Additionally, Hudco is negotiating with the Asian Development Bank (ADB) for a loan of $500 million and the Asian Infrastructure Investment Bank (AIIB) for $200-300 million. Kulshreshta expressed confidence that the company will finalize these fundraising efforts, totaling around $1 billion, during the current financial year to support its on-lending activities for infrastructure projects.