The next portion of the Bharat Bond exchange-traded fund (ETF) shall be launched by December. A senior finance ministry official informed that it is expected to raise over Rs 10,000 crore to fund the growth plans of central public enterprises. The fund requirement of CPSEs are being worked out, he added. The third tranche of the ETF will be launched to the end of the calendar year.
"We are finalising on the amount to be raised, but it would be over ₹ 10,000 crore," the official said.
Bharat Bond ETF is an exchange-traded fund. It invests in the debt of public sector companies. It currently invests only in AAA-rated bonds of public sector companies. The funds raised help to smoothen the borrowing plans of participating CPSEs or public sector banks. It also helps meet capital expenditure needs.
The second tranche of the Bharat Bond ETF was launched in July 2020. It was oversubscribed more than three times and collected about Rs 11,000 crores. In its debut offer in December 2019, it had fetched about Rs 12,400 crores.
It offered maturity options of five and twelve years in its second tranche and maturity options for three and ten years in the first tranche. Edelweiss Asset Management is the fund manager of the scheme.