New Delhi: The fourth tranche of Bharat Bond ETF, India’s first corporate bond exchange-traded fund, was subscribed 2.8 times, with total inflow exceeding Rs 2,800 crore, DIPAM Secretary Tuhin Kanta said on Friday. Pandy. The ETF’s new fund offering, open from December 2-8, had a base issue size of Rs 1,000 crore, with a greenshoe option to retain an oversubscription of Rs 4,000 crore.
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“The April 2033 issue of Bharat Bond ETF was oversubscribed 2.8 times against the base issue size of Rs 1,000 crore. Total collection exceeded Rs 2,800 crore,” Pandey tweeted. The funds raised would be used to undertake capital expenditure by public sector enterprises. The instrument invests only in “AAA” rated bonds of public sector companies. This new series Bharat Bond ETF and Bharat Bond Fund of Fund (FOF), managed by Edelweiss Mutual Fund, will mature in April 2033.
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In December last year, the government launched the third tranche with a base issue size of Rs 1,000 crore. It was oversubscribed 6.2 times with offers worth Rs 6,200 crore. The first Bharat Bond ETF offering was launched in 2019, helping core public sector companies to raise Rs 12,400 crore. In the second and third tranches, it had raised Rs 11,000 crore and Rs 6,200 crore, respectively. The ETF has raised Rs 29,600 crore in its three offerings so far.
Since its launch in 2019, the ETF’s assets under management (AUM) has crossed the Rs 50,000 crore mark. So far, Bharat Bond ETFs have been launched with six expiry dates in 2023, 2025, 2030, 2031, 2032 and 2033.