bharat bond etf: the government could raise more than Rs 10,000 cr via Bharat Bond ETF by December

New Delhi: Government expected to launch next tranche of Bharat Bond ETF by December and expects to raise more than Rs 10,000 crore to fund growth plans of central public sector companies, senior official says of the Ministry of Finance. The official added that the fund requirements for the CPSE are under development and the third tranche of the exchange-traded fund (ETF) will be launched by the end of the calendar year.

“We are in the process of finalizing the amount to be raised, but it would be over Rs 10,000 crore,” the official said.

Bharat Bond ETF is an exchange-traded fund that invests in the debt of public sector companies. The ETF currently only invests in “AAA” rated bonds of public sector companies.

The funds raised through the debt ETF help smooth the borrowing plans of participating CPSEs or public sector banks. It also helps them meet their capital expenditure needs.

The second tranche of the Bharat Bond ETF, which was launched in July 2020, has been oversubscribed more than three times, raising around Rs 11,000 crore. He had grossed around Rs 12,400 crore in his first offering in December 2019.

The Bharat Bond ETF offered five and 12 year maturity options in its second tranche, while in the first tranche the expiration options were three and 10 years.

Edelweiss Asset Management is the fund manager of the scheme.