Bharat Bond ETF second series raises Rs 10,000 crore

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Published: July 18, 2020 9:04 AM

From the perspective of investors, the quasi-sovereign nature of the CPSE bonds in the index is an attraction, so are the low entry barrier and expense ratio.

The funds collected will be invested in two new series of AAA-rated CPSE bonds.The funds collected will be invested in two new series of AAA-rated CPSE bonds.

Bharat Bond Exchange Traded Fund (ETF), a key instrument for central public sector enterprises (CPSEs) to raise debt capital from a larger pool of sources, including retail investors, raised around Rs 10,000 crore on Friday.

“The second series of Bharat Bond ETF received an outstanding response, oversubscribed more than three times, estimated collection around Rs 10,000 crore with wide participation across categories. Final numbers are still being tallied and will be released by Monday,” Department of Investment and Public Asset Management secretary Tuhin Kanta Pandey tweeted.

The funds collected will be invested in two new series of AAA-rated CPSE bonds with maturity profile of 5 years and 11 years. From the perspective of investors, the quasi-sovereign nature of the CPSE bonds in the index is an attraction, so are the low entry barrier and expense ratio.

In its maiden offer in December last year, Bharat Bond ETF had mobilised Rs 12,400 crore for the CPSEs via two investment options – a short-term instrument for 3 years (Bharat Bond ETF April 2023) and a long-term one for 10 years (Bharat Bond ETF April 2030).

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