Bharat Bond ETF Subscribed Over 3 Times, Fetches Rs 10,000 Crore

Bharat Bond ETFs are exchange-traded funds that invest in AAA-rated bonds of public sector companies.

The second tranche of Bharat Bond ETF (exchange-traded fund), which closed on July 17, was over-subscribed by more than 3 times and garnered around Rs 10,000 crore. The Bharat bond ETF, which is managed by Edelweiss Asset Management Company (AMC), was open for subscription between July 14 and July 17.

“The second series of Bharat Bond ETF received an outstanding response, oversubscribed more than 3 times, estimated collection around Rs 10,000 crores with wide participation across categories,” Secretary DIPAM (Department of Investment and Public Asset Management) said in a tweet.

The final collection numbers are still being tallied and will be released by Monday, the tweet further added.

Bharat Bond ETFs are the first corporate bond ETFs in the country. They are listed and traded on the exchanges. These funds invest in AAA-rated bonds of public sector companies, thereby acting as an additional source of funding for central public sector enterprises and state-owned financial institutions. Bharat Bond ETFs have a defined maturity tenure of 3 years and 10 years.

The minimum investment amount is Rs.1,000 and in multiples of Rs 1 thereafter. The amount has been kept on the lower side so as to facilitate the participation of retail investors, who can’t otherwise participate in the bond markets due to liquidity constraints. Upon maturity of these ETFs, the investors get back their invested amount, with applicable returns.

Bharat Bond ETF made its debut offer in December 2019. It had fetched about Rs 12,400 crore from this first offer, which also had a fixed maturity of 3 years and 10 years.

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