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
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
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.
The foreign funding will not only diversify Hudco's resource-raising stream but also help lower the cost of funds. To further improve cost efficiencies, the company has been authorized by the government to issue 54 EC Capital Gain Bonds, through which it has already mobilized ₹50 crore this year. Hudco aims to raise an additional ₹150 crore from these bonds by the end of the current fiscal year.
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 is also focused on maintaining a healthy asset quality, with its gross non-performing assets (NPAs) declining to 1.21% and net NPAs falling to 0.07% as of September 2025.
