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Second tranche of Bharat Bond ETF coming, aims to raise Rs 14,000 crore

Bharat Bond Funds of Funds (FOF) with similar maturities will also be launched for investors, who do not have demat accounts, the fund house said.

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Last Updated: May 22, 2020, 12.31 PM IST
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​What is Bharat Bond ETF?
The bond ETF invests in constituents of the Nifty Bharat Bond Indices, consisting of AAA-rated public sector companies.
NEW DELHI: Edelweiss Asset Management on Friday said it would launch the second tranche of Bharat Bond ETF in July with two new series to raise up to Rs 14,000 crore from the market. The two new series will have maturities of April 2025 and April 2031. Through these issues, Edelweiss Mutual Fund proposes to raise an initial amount of Rs 3,000 crore with a green shoe option to raise an additional Rs 11,000 crore based on market demand.

‘’The launch is in line with our vision to create a ladder of Bharat Bond ETFs across various maturities on the yield curve. This will provide more options for investors to match their investment needs with different time horizons," said Radhika Gupta, CEO, Edelweiss Mutual Fund.

Bharat Bond Funds of Funds (FOF) with similar maturities will also be launched for investors, who do not have demat accounts, the fund house said.

The bond ETF invests in constituents of the Nifty Bharat Bond Indices, consisting of AAA-rated public sector companies including EXIM Bank, HPCL, HUDCO, IRFC, NABARD, NHAI, NHPC, NTPC, PFC, NPCIL, Power Grid, REC and SIDBI. The first tranche of Bharat Bond ETF in December last year had successfully raised over Rs 12,400 crore.

“The Bharat Bond ETF program continues to see healthy investor participation and good liquidity on the exchanges. The bid-ask spread (the difference between the buy and sell quotes) has stayed in a narrow range of 5 to 10 Bps and the daily average traded value in these ETFs has been between Rs 3 to 3.5 crore, making it one of the more liquid ETFs in India,” the fund house said in a release

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