Opening of the third tranche of Bharat Bond ETF for subscription on December 3

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NEW DELHI: The third tranche of the Bharat Bond ETF, through which the government seeks to raise more than Rs 10,000 crore, will be open for subscription on December 3, an official close to development said on Monday.
The subscription will be closed on December 9. In addition, the base size of the show will be Rs 1,000 crore with an open green shoe option, the official added.
Bharat Bond ETF is an exchange-traded fund that invests in the debt of public sector companies. Currently, the ETF only invests in “AAA” rated bonds of public sector companies. Edelweiss Asset Management is the fund manager of the scheme.
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 scheme information document (SID) has already been filed with the capital markets regulator Sebi.
The latest installment comes after the successful launch of the first round of the ETF in December 2019 and the second round in July 2020.
The second tranche of the Bharat Bond ETF has been oversubscribed more than three times, raising around Rs 11,000 crore. He had brought in around Rs 12,400 crore in his first offering.
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 ten years.
Last month, a senior finance ministry official told PTI that the government plans to raise more than Rs 10,000 crore through the third tranche to fund growth plans of central public sector companies.
“We are in the process of finalizing the amount to be raised, but it will be over Rs 10,000 crore,” the official said.
At the end of October, the total assets under management of Bharat Bond ETF stood at over Rs 36,000 crore.


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