Breaking
  • Covid Omicron threat: 30,000 hospital beds including 10,000 ICU beds available, says CM Arvind Kejriwal
  • No decision on nationwide NRC as of now: Home Ministry tells Parliament
X
  1. You Are At:
  2. English News
  3. Business
  4. Government may raise over Rs 10,000 Crore via Bharat Bond ETF by December

Government may raise over Rs 10,000 Crore via Bharat Bond ETF by December

Bharat Bond ETF is an exchange-traded fund that invests in the debt of public sector companies.

PTI PTI
New Delhi Published on: October 24, 2021 17:20 IST
bharat bond etf
Image Source : PTI

Government may raise over Rs 10,000 Crore via Bharat Bond ETF by December

The government is likely to launch the next tranche of the Bharat Bond ETF by December and expects to raise over Rs 10,000 crore to fund growth plans of central public sector enterprises, according to a senior finance ministry official. The official added that the fund requirements of CPSEs are being worked out and the third tranche of the exchange-traded fund (ETF) will be launched by the end of the calendar year. "We are finalizing on the amount to be raised but it would be over Rs 10,000 crore," the official said.

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 three times, collecting about Rs 11,000 crore. It had fetched about Rs 12,400 crore in its debut offer in December 2019.

The Bharat Bond ETF offered maturity options of five and 12 years in its second tranche, while in the first tranche, maturity options were for three and 10 years. Edelweiss Asset Management is the fund manager of the scheme. 

Also Read: Sovereign Gold Bond Series VII opens on Monday | Check issue price, subscription, other details

Also Read: Paytm gets Sebi nod for mega Rs 16,600-cr IPO, may get stock market listing by mid-November

Latest Business News

Write a comment