New Delhi: The third tranche of Bharat Bond ETF will be launched on December 3 to raise around Rs 5,000 crore to fund growth plans of Central Public Sector Enterprises, Edelweiss Asset Management said on Wednesday. This new fund offer (NFO) will start on December 3, 2021, and end on December 9, 2021. The new series will mature on April 15, 2032.
The NFO will have a base issue size of Rs 1,000 crore with an open greenshoe option.
The greenshoe option is expected to be around Rs 4,000 crore, thus taking the total amount to be mobilised through the ETF to Rs 5,000 crore.
The AUM of Bharat Bond ETF, which is managed by Edelweiss Mutual Fund, stands at Rs 36,359 crore at the end of October 2021.
Bharat Bond ETF is an exchange-traded fund that invests in the 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 smoothening borrowing plans of the participating CPSEs or public sector banks. It also helps them in meeting their capital expenditure needs.
The second tranche of the Bharat Bond ETF, which was launched in July 2020, was oversubscribed more than 3 times, collecting about Rs 11,000 crore. It had fetched about Rs 12,400 crore in its debut offer in December 2019.
Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said the organic increase in AUM of existing Bharat Bond ETFs in the last two years resembles investors’ confidence in the product and we are very happy with its overall impact on the market.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
