Bharat Bond ETF is an exchange-traded fund that invests in the debt of public sector companies. Currently, the ETF invests only 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 helps in smoothening borrowing plans of the participating CPSEs or public sector banks. It also helps them in meeting their capital expenditure needs.
The scheme information document (SID) has already been filed with the capital markets regulator Sebi.
The latest tranche comes after the successful launch of the initial series of the ETF in December 2019 and second series in July 2020.
The second tranche of the Bharat Bond ETF was oversubscribed more than three times, collecting about Rs 11,000 crore. It had fetched about Rs 12,400 crore in its debut offer.
The Bharat Bond ETF offered maturity options of five and 12 years in its second tranche; while in the first tranche, maturity options were for three and 10 years.
Last month, a senior official in the finance ministry had told PTI that the government is expecting to raise over Rs 10,000 crore through the third tranche to fund growth plans of central public sector enterprises.
“We are finalising on the amount to be raised but it will be over Rs 10,000 crore,” the official had said.
As of October-end, total assets under management of Bharat Bond ETF was at over Rs 36,000 crore.
