Hudco raises $448 million in Yen debt in a rare transaction for state-owned firm
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The Housing and Urban Development Corp (Hudco) has raised 60 billion yen ($448 million) from three of the largest banks in Japan in what is a rare transaction for a government-owned company in that currency. Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp (SMBC) and Mizuho Bank, three of the largest banking groups in Japan by assets, have come together to finance a rare loan for Hudco, people familiar with the development said. Hudco builds mass housing projects in metro cities and finances construction projects. "The five-year loan was priced at 70 basis points above the Tokyo Overnight Average Rate (TONAR), the interbank benchmark rate in, Japan. The funds will be swapped to the dollar and brought into India to use for domestic lending purposes," said a person familiar with the deal. One basis point is 0.01 %. The TONAR is currently quoting at 0.25%. After hedging, the landed cost of the loan is less than 7...
