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Bharat Bond ETF over-subscribed; garners Rs 2,800 crore

In December last year, the government had launched the third tranche with a base issue size of Rs 1,000 crore. It was over-subscribed 6.2 times with bids worth Rs 6,200 crore coming in. The maiden offering of Bharat Bond ETF was launched in 2019, helping central public sector enterprises raise Rs 12,400 crore.

  • The fourth tranche of Bharat Bond ETF was subscribed 2.8 times.
  • In December last year, the government had launched the third tranche with a base issue size of Rs 1,000 crore.
  • In the second and third tranches, it had raised Rs 11,000 crore and Rs 6,200 crore, respectively.

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Bharat Bond ETF over-subscribed; garners Rs 2,800 crore

New Delhi: The fourth tranche of Bharat Bond ETF, India's first corporate bond exchange traded fund, was subscribed 2.8 times with the total collection exceeding Rs 2,800 crore, DIPAM Secretary Tuhin Kanta Pandey said on Friday. The new fund offer of the ETF which was open from December 2-8 had a base issue size of Rs 1,000 crore, with a greenshoe option of retaining over-subscription of Rs 4,000 crore.

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"The April 2033 issue of Bharat Bond ETF has been oversubscribed 2.8 times against the base issue size of Rs 1,000 cr. The total collection has crossed Rs 2,800 crore," Pandey tweeted. The funds raised would be utilised for undertaking capital expenditures by public sector enterprises. The instrument invests only in 'AAA'-rated bonds of public sector companies. This new Bharat Bond ETF and Bharat Bond Fund of Fund (FOF) series, managed by Edelweiss Mutual Fund, will mature in April 2033.

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In December last year, the government had launched the third tranche with a base issue size of Rs 1,000 crore. It was over-subscribed 6.2 times with bids worth Rs 6,200 crore coming in. The maiden offering of Bharat Bond ETF was launched in 2019, helping central public sector enterprises 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 asset under management (AUM) of the ETF has crossed the Rs 50,000 crore-mark. So far, Bharat Bond ETFs have been launched with six maturity dates in 2023, 2025, 2030, 2031, 2032 and 2033.