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HomeBusinessGovernment May Raise Rs 10,000 Crore By December Via Bharat Bond ETF

Government May Raise Rs 10,000 Crore By December Via Bharat Bond ETF

Authorities could launch subsequent tranche of Bharat Bond ETF by December

The federal government is more likely to launch the subsequent tranche of the Bharat Bond exchange-traded fund (ETF) by December and expects to boost over Rs 10,000 crore to fund progress plans of central public sector enterprises, based on a senior finance ministry official.

The official added that the fund necessities of CPSEs are being labored out and the third tranche of the ETF might be launched by the tip of the calendar 12 months.

“We’re finalising on the quantity to be raised however it could be over Rs 10,000 crore,” the official mentioned. Bharat Bond ETF is an exchange-traded fund that invests in debt of public sector firms.

The ETF presently invests solely in ‘AAA’-rated bonds of public sector firms. Bharat Bond ETF is an exchange-traded fund that invests in debt of public sector firms. The ETF presently invests solely in ‘AAA’-rated bonds of public sector firms.

The funds raised by the debt ETF helps in smoothening borrowing plans of the taking part CPSEs or public sector banks. It additionally helps them in assembly their capital expenditure wants.

The second tranche of the Bharat Bond ETF, which was launched in July 2020, was oversubscribed greater than thrice, amassing about Rs 11,000 crore. It had fetched about Rs 12,400 crore in its debut provide in December 2019.

The Bharat Bond ETF provided maturity choices of 5 and 12 years in its second tranche, whereas within the first tranche, maturity choices had been for 3 and 10 years. Edelweiss Asset Administration is the fund supervisor of the scheme. Edelweiss Asset Administration is the fund supervisor of the scheme.

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