Government may raise Rs 10,000 crore from Bharat Bond ETF by December
If you want to earn well by investing in the market then this is a great opportunity for you. The government can bring the next installment of Bharat Bond ETF by December. A senior official of the Finance Ministry gave this information. The official said that the government can raise Rs 10,000 crore from Bharat Bond ETF by December. This amount will be used for the growth plan of Central Public Sector Undertakings (CPSEs). The official said the fund requirement of central public sector undertakings is being assessed and the third tranche of exchange traded fund (ETF) will be introduced before the end of the current calendar year.
He said, “Right now we are finalizing this amount. But it will be more than Rs 10,000 crore. Bharat Bond ETF is an exchange traded fund that invests in bonds of public sector companies. The ETF currently invests only in ‘AAA’ rated bonds.
The money raised through ETFs is used for raising debt of CPSEs or public sector banks. This also meets their capital expenditure requirement. Edelweiss is the fund manager of the Asset Management Scheme.
So many crores raised from the first and second installment
Let us inform that the second installment of Bharat Bond ETF was launched in July 2020. It was oversubscribed more than three times and the government raised Rs 11,000 crore from it. The government had received around Rs 12,400 crore in its first offer in December 2019.
The Bharat Bond ETF offered maturity options of 5 and 12 years in its second tranche, while the maturity options in the first tranche were for 3 and 10 years.
Highlights of Bharat Bond ETF-
>> It is the country’s first Corporate Bond Exchange Traded Fund (ETF)
>> Investors can invest minimum Rs.1,000 in Bharat Bond ETF. After this, investments can be made in multiples of Rs 1,000.
>> Exchange Traded Fund will invest only in AAA rated public sector bonds.
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