Business

Bharat Bond ETF opens for subscription

Anchor book subscription at ₹2,980 cr.

The public issue of Bharat Bond ETF, the country’s first corporate bond exchange-traded fund aimed at retail investors, opened on Thursday.

The ETF will invest only in AAA-rated bonds of public sector companies.

The ETF, which is an initiative of the Government of India through the Department of Investment and Public Asset Management (DIPAM), will be managed by Edelweiss Asset Management Company.

“The NFO of Bharat Bond ETF, the first corporate bond ETF of the country, was launched today.

“The anchor book was oversubscribed by 1.7 times at ₹2,980 crore. The offer will remain open for all investors from December 13 to December 20,” the DIPAM Secretary said in a tweet.

Green shoe option

Through the ETF, Edelweiss Mutual Fund proposes to raise an initial amount of ₹3,000 crore with a green shoe option of ₹2,000 crore in the 3-year maturity period (2023) and ₹4,000 crore with a green shoe option of ₹6,000 crore in the 10-year maturity bucket (2030), the fund house said in a release.

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Printable version | Feb 28, 2020 4:38:54 AM | https://www.thehindu.com/business/bharat-bond-etf-opens-for-subscription/article30289443.ece

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