Housing and Urban Development Corporation (Hudco) intends to raise $1 billion in foreign debt using the Reserve Bank of India's concessional forex swap facility. This move aims to attract foreign currency inflows and support the rupee by reducing currency hedging costs for borrowers.
This move by Hudco signifies a strategic effort to leverage favorable foreign exchange conditions and central bank facilities to secure funding, potentially lowering borrowing costs and supporting India's foreign currency reserves and rupee stability.
Housing and Urban Development Corporation (Hudco) is planning to raise $1 billion in foreign debt by utilizing the Reserve Bank of India's (RBI) concessional forex swap facility. This initiative is part of the RBI's broader effort to attract foreign currency inflows and support the Indian rupee.
According to Hudco Chairman and Managing Director Sanjay Kulshrestha, the company has secured funding lines of approximately $1 billion that can be accessed under the facility, pending regulatory approvals and market conditions. Hudco has already engaged with financial entities in the United States, Japan, and the eurozone for this fundraising effort.
The RBI's forex swap facility allows banks and public sector undertakings to raise foreign debt and swap it with the central bank at a favorable rate, effectively reducing currency hedging costs for borrowers by an estimated 1-1.5%. Kulshrestha noted that recent policy measures by the RBI and the government have fostered a supportive environment for both domestic and international fundraising.
Beyond this debt-raising plan, Hudco aims to mobilize around ₹70,000 crore in the current financial year to support its lending operations and business growth. The organization, which finances housing and urban infrastructure projects, had a loan book of ₹1.65 lakh crore as of the end of March 2026. Hudco is also expanding its role to include project planning and preparation assistance for states and urban local bodies, focusing on climate-resilient infrastructure and environmental sustainability.