The authorities on Friday launched the fourth tranche of Bharat Bond ETF, India’s first company bond exchange-traded fund. The new fund provide of the ETF opened on December 2 and can shut for subscription on December 8. Edelweiss Mutual Fund is managing the fund.
The funds raised could be utilised for endeavor capital expenditures by central public sector enterprises (CPSEs). This new Bharat Bond ETF and Bharat Bond Fund of Fund (FOF) collection will mature in April 2033. Through the launch of this new collection within the fourth tranche, the federal government proposes to lift an preliminary quantity of Rs 1,000 crore with a inexperienced shoe possibility of Rs 4,000 crore.
In December final yr, the federal government had launched the third tranche with a base challenge dimension of Rs 1,000 crore. It was over-subscribed 6.2 instances with bids price Rs 6,200 crore coming in. The maiden providing of Bharat Bond ETF was launched in 2019, serving to CPSEs elevate Rs 12,400 crore. In the second and third tranches, it had raised Rs 11,000 crore and Rs 6,200 crore, respectively. The ETF has raised Rs 29,600 crore in its three choices thus far.
“Bharat Bond ETF programme has obtained an enthusiastic response from all classes of buyers since its launch. Bharat Bond has created a novel alternative for all Indian buyers to spend money on PSU Bonds and gasoline India’s progress story,” Tuhin Kanta Pandey, Secretary, DIPAM, Ministry of Finance, said.
Bharat Bond ETF invests only in ‘AAA’-rated bonds of public sector companies. Since its launch in 2019, the asset under management (AUM) of the ETF has crossed the Rs 50,000 crore-mark.
So far, five maturities of Bharat Bond ETFs have been launched — 2023, 2025, 2030, 2031, & 2032. “Target Maturity Fund category is growing at an exciting pace post the launch of Edelweiss MF’s Bharat Bond ETF. Investing in long-term debt has been brought to the forefront by these funds. Bharat Bond ETF now has six maturities –- from 2023 to 2033 — which will allow investors to select the right maturity as per their investment goals,” Radhika Gupta, MD and CEO, Edelweiss Mutual Fund, mentioned.
(Inputs From PTI)
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