Government might introduce next tranche of Bharat Bond ETF by DecemberThe federal government is most likely to launch the next tranche of the Bharat Bond exchange-traded fund (ETF) by December and expects to raise over Rs 10,000 crore to money growth strategies of main public sector enterprises, according to a senior finance ministry official.The authorities added that the fund requirements of CPSEs are being exercised and the third tranche of the ETF will be released by the end of the fiscal year.
We are finalising on the total up 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 debt of public sector companies.The ETF presently invests only in 'AAA'-rated bonds of public sector business.
Bharat Bond ETF is an exchange-traded fund that buys debt of public sector companies.
The ETF currently invests only in 'AAA'-rated bonds of public sector companies.The funds raised through the debt ETF helps in smoothing borrowing strategies of the participating CPSEs or public sector banks.
It likewise helps them in fulfilling their capital expenditure needs.The 2nd tranche of the Bharat Bond ETF, which was released in July 2020, was oversubscribed more than 3 times, gathering about Rs 11,000 crore.
It had actually brought about Rs 12,400 crore in its launching deal in December 2019.
The Bharat Bond ETF used maturity alternatives of five and 12 years in its 2nd tranche, while in the first tranche, maturity alternatives were for 3 and ten years.
Edelweiss Asset Management is the fund manager of the scheme.
Edelweiss Asset Management is the fund supervisor of the plan.