India Business Journal - HUDCO lines up $1.3-billion ECB with RBI’s swap facility to fund infrastructure

MONEY

HUDCO lines up $1.3-billion ECB with RBI’s swap facility to fund infrastructure

IBJ Bureau
Jul 29, 2026

Housing and Urban Development Corporation (HUDCO) will be raising $1.3 billion via external commercial borrowings (ECB) in the next five months to fund urban infrastructure in the country.

The techno-financing public sector undertaking (PSU) in the field of housing and infrastructure development intends to raise up to $2 billion through the ECB under the RBI’s concessional swap window available up to December 31, 2026.

“We have raised $700 million through the ECB in this financial year so far. The remaining $1.3 billion would be raised in the next five months depending on funding requirement,” HUDCO Chairman and Managing Director Sanjay Kulshrestha has said.

In June, the RBI had opened the special dollar-rupee forex swap window to offer a swap premium at a fixed, concessional rate of 1.5 per cent to PSUs raising ECB to lower their currency hedging costs.

Last year, the financial institution had mopped up about $700 million through the ECB route in Japanese yen.

This year, HUDCO will be raising the ECB in US dollars and yen, Mr Kulshrestha has said, adding that the company will be borrowing in dollars for the first time.

HUDCO has mopped up the ECB so far at an interest rate of 6.25 per cent per annum, he has said.