HUDCO's $200 Million Maiden Social Loan Marks New Era in Urban Housing

Housing and Urban Development Corporation (HUDCO) secures USD 200 million in its first syndicated loan, with Sumitomo Mitsui Banking Corporation (SMBC) leading the deal. The loan, targeted for social housing, aims to enhance urban infrastructure and was oversubscribed, marking a significant step for Indian companies in the Japanese loan market.

The Housing and Urban Development Corporation (HUDCO) has successfully raised USD 200 million (JPY 30 billion) in its inaugural foray into the syndicated loan market, according to an announcement on Tuesday by its arranger, Sumitomo Mitsui Banking Corporation (SMBC).

This state-run entity secured five-year funding as part of its first 'social loan', led by SMBC's Singapore branch. The deal witnessed an impressive oversubscription, involving nine lenders, and was upsized from its initial JPY 15 billion to JPY 30 billion after opting for the greenshoe option, as disclosed in an official statement.

The social loan is aimed at further expanding HUDCO's social housing initiatives, thereby elevating the quality of life for India's urban communities and enhancing infrastructure. SMBC functioned as the sole mandated lead arranger, book runner, and social loan coordinator for the transaction.

Hiroyuki Mesaki, country head of SMBC India, expressed optimism about expanding outreach to underserved communities and strengthening local resource access. Rakesh Garg, SMBC India's chief business officer, highlighted that this financing sets new benchmarks for Indian entities exploring the Japanese Yen loan markets.

HUDCO's chairman and managing director, Sanjay Kulshreshta, noted that the significant infrastructure outlay indicates robust growth prospects and emphasized that the deal aids in diversifying the resource base and optimizing costs.

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