Hyderabad Metropolitan Development Authority Bonds

Hyderabad Metropolitan Development Authority (HMDA) is the statutory urban development authority for the Hyderabad Metropolitan Region, set up in August 2008 under the Hyderabad Metropolitan Development Authority Act, 2008 by merging the erstwhile HUDA, HADA, Cyberabad Development Authority and Buddha Poornima Project Authority. It became operational on 25 August 2008 and its jurisdiction covers about 7,257 square kilometres across seven districts, 70 mandals and 1,032 villages. HMDA plans, coordinates and executes infrastructure and land development in the region and is administered by the Municipal Administration and Urban Development department of the Government of Telangana, with the Chief Minister as its Chairman. Its bonds carry an unconditional and irrevocable guarantee from the Government of Telangana with a direct debit mechanism on the state, and are further backed by a structured payment mechanism with an escrow, a Bond Servicing Account and a debt service reserve account covering two quarters of peak servicing. Acuite rates the guaranteed bond programmes, sized at Rs 5,000 crore per tranche, at ACUITE AA+ (CE) with a Stable outlook. HMDA reported an operating income of Rs 444.22 crore and a net loss of Rs 995.20 crore in FY25, with very low gearing at 0.04 times total debt to tangible net worth.

Hyderabad Metropolitan Development Authority's listed bonds carry an AA credit rating from Acuite. A credit rating measures the chance of default, not price stability, and corporate bonds are not covered by DICGC deposit insurance. Read the issuer's latest rating rationale before you invest.

As of Sept 2026, the 1 listed Hyderabad Metropolitan Development Authority bond yields about 8.15% (average 8.2%), against roughly 6-7% on a comparable bank FD.