Bharat Bond ETF: Govt to launch fourth tranche on THIS date – Verify Particulars

The federal government will launch the fourth tranche of Bharat Bond ETF, India’s first company bond alternate traded fund, from Friday.

The brand new fund provide of the ETF will open on December 2 and shut for subscription on December 8, Edelweiss Mutual Fund, which manages the fund, mentioned in an announcement on Thursday.
The funds raised can be utilised for endeavor capital expenditures by central public sector enterprises (CPSEs).

This new Bharat Bond ETF and Bharat Bond Fund of Fund (FOF) sequence will mature in April 2033.

Via the launch of this new sequence within the fourth tranche, the federal government proposes to lift an preliminary quantity of Rs 1,000 crore with a inexperienced shoe choice of Rs 4,000 crore.

In December final yr, the federal government had launched the third tranche with a base difficulty measurement of Rs 1,000 crore. It was over-subscribed 6.2 instances with bids value Rs 6,200 crore coming in.

The maiden providing of Bharat Bond ETF was launched in 2019, serving to CPSEs increase Rs 12,400 crore. Within 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 choices to date.

“Bharat Bond ETF programme has obtained an enthusiastic response from all classes of traders since its launch. Bharat Bond has created a novel alternative for all Indian traders to put money into PSU Bonds and gasoline India’s development story,” Tuhin Kanta Pandey, Secretary, DIPAM, Ministry of Finance, mentioned.

Bharat Bond ETF invests solely in ‘AAA’-rated bonds of public sector corporations. Since its launch in 2019, the asset underneath administration (AUM) of the ETF has crossed the Rs 50,000 crore-mark. Up to now, 5 maturities of Bharat Bond ETFs have been launched — 2023, 2025, 2030, 2031, & 2032.

“Goal Maturity Fund class is rising at an thrilling tempo submit the launch of Edelweiss MF’s Bharat Bond ETF. Investing in long-term debt has been dropped at the forefront by these funds. Bharat Bond ETF now has six maturities – from 2023 to 2033 — which is able to enable traders to pick the appropriate maturity as per their funding targets,” Radhika Gupta, MD and CEO, Edelweiss Mutual Fund, mentioned.

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