Bharat Bond ETF subscribed 1.7 times

Fund garners about ₹12,000 crore

Published - December 20, 2019 11:25 pm IST - MUMBAI

Bharat Bond Exchange Traded Fund (ETF), the country’s first corporate bond exchange-traded fund aimed at retail investors, saw a strong response, with the issue getting subscribed around 1.7 times.

“India’s first corporate bond ETF, Bharat Bond ETF, has received a great response from investors across different segments. The issue was oversubscribed approximately 1.7 times, collecting about ₹12000 crore. Information is subject to further updates,” stated a tweet by Secretary, Department of Investment and Public Asset Management (DIPAM).

The ETF offer, which closed on Friday, had a base issue size of ₹7,000 crore.

According to Edelweiss Asset Management Company, which is managing the ETF, the issue saw wide participation across categories including individuals, non-resident Indians, high networth individuals, top tier corporates and foreign portfolio investors (FPIs).

Through the ETF, Edelweiss Mutual Fund had proposed to raise an initial amount of ₹3,000 crore, with a green shoe option of ₹2,000 crore in the three-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 had said in a release.

The exchange traded fund will invest only in AAA-rated bonds of public sector companies.

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