The second tranche of Bharat Bond ETF, which was launched in July, was oversubscribed more than 3 times, collecting about Rs 11,000 crore. It had fetched about Rs 12,400 crore in its debut offer in December 2019.
The funds raised through debt ETF help in smoothening borrowing plans of the participating CPSEs or public sector banks. It also helps them in meeting their capital expenditure needs.
Bharat Bond ETF, which is a debt exchange traded fund (ETF), offered maturity options of 5 and 12 years in its second tranche, while in the first tranche, maturity options were for 3 and 10 years.
The ETF currently invests only in ‘AAA’ rated bonds of public sector companies.