“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 âAAAâ 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.