Bharat Bond ETF Subscribed Nearly 2 Times, Fetches Rs 12,000 Crore

The ETF with a three-year maturity will follow the Nifty Bharat Bond Index-April 2023 and the one with a 10-year maturity will follow the Nifty Bharat Bond Index-April 2030.

Bharat Bond ETF Subscribed Nearly 2 Times, Fetches Rs 12,000 Crore
New Delhi:

The Bharat Bond ETF has closed for subscription on Friday with over-subscription of 1.7 times, accumulating Rs 12,000 crore against its base size of Rs 7,000 crore.

"India's first corporate Bond ETF, Bharat Bond ETF, has received a great response from investors across different segments," DIPAM Secretary Tuhin Kanta Pandey said in a tweet.

"The issue was over-subscribed approximately 1.7 times, collecting about Rs 12,000 crore. Information is subject to further update," he said.

The exchange traded fund will invest only in "AAA"-rated bonds of public sector companies and will have target maturity structures.

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The ETF with a three-year maturity will follow the Nifty Bharat Bond Index-April 2023 and the one with a 10-year maturity will follow the Nifty Bharat Bond Index-April 2030.

The yield as on December 5 , 2019, of Nifty Bharat Bond Index-April 2023 is 6.69 per cent and the Nifty Bharat Bond Index-April 2030 is 7.58 per cent.

The government is trying to meet a disinvestment target of Rs 1.05 lakh crore.