Back

Govt likely to launch third tranche of Bharat Bond ETF by Jun-end

Informist, Friday, Apr 9, 2021

 

–Source: Govt to soon ask PSUs on borrowing requirement for FY22 

 

By Sagar Sen

 

NEW DELHI – The government is likely to launch the next tranche of the Bharat Bond Exchange-Traded Fund by June-end and will ask public sector companies for their fund requirements soon, a senior finance ministry official said.

 

"The last tranche was completed in July and had received good response from investors," the official told Informist. "Now with the new financial year starting, the PSUs will be asked for their fund requirement and the next tranche may be floated by end of first quarter."

 

The official added the size of the Exchange-Traded Fund will be decided once the meetings with interested PSUs are completed, however, initial estimate suggests it might be around 100-150 bln rupees.

 

In its maiden issue in December 2019, the Bharat Bond Exchange-Traded Fund had raised 124 bln rupees. The second tranche of the bond ETF in July was subscribed 3.7 times, raising close to 109.9 bln rupees.

 

The exchange-traded fund, whose units are listed and traded on stock exchanges, is managed by Edelweiss Mutual Fund. The funds raised through the exchange-traded fund is invested in constituents of Nifty Bharat Bond Indices, comprising AAA-rated debt securities of public sector companies.

 

In the last two tranches, it invested AAA-rated papers issued by entities such as Power Finance Corp Ltd, REC Ltd, Indian Railway Finance Corp Ltd, Power Grid Corp of India Ltd, Indian Oil Corp Ltd, NHPC Ltd, National Housing Bank, Hindustan Petroleum Corp Ltd, NTPC Ltd, National Highways Authority of India, and Housing and Urban Development Corp Ltd.

 

Market experts expect the next tranche to have different maturity options than the previous two tranches.

 

In the first tranche, Bharat Bond ETF offered maturity of three years and 10 years, while the second tranche offered maturities of five years and 12 years.

 

Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey had previously said the government would like to provide different maturity options for investors under the new series.  End

 

Edited by Ramya J.S. D'Rozario

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2021. All rights reserved.

 

Other News

West Bengal tightens restrictions till May 30 to contain COVID-19

Informist, Saturday, May 15, 2021 KOLKATA – The West Bengal government today tightened curbs to contain the spread of the COVID-19 pandemic, thereby bringing the state to nearly a lockdown like situation for 15 days starting Sunday. "Stricter restrictions and measures are being brought in to control the spread of the virus and reduce the pressure on health […]

Cash holdings of states falls to 6-month low of 2.13 trln rupees Apr

Informist, Friday, May 14, 2021 By Adrija Chatterjee NEW DELHI — Cash holdings of state governments fell to a six-month low of 2.13 trln rupees at the end of April, suggesting that many of them dipped into their substantial cash piles to meet expenses, data from the finance ministry showed.  According to the monthly summary report of the expenditure […]

NITI Aayog discusses fiscal package options amid surge in COVID cases

Informist, Friday, May 14, 2021 –Source: Direct transfer, higher infra spend among fiscal options By Tushar Chakrabarty NEW DELHI – The NITI Aayog has begun discussions on whether India needs another fiscal package to boost the economy in the backdrop of the devastating second wave of the COVID-19 pandemic, a senior government official said. "We are mulling if a fiscal response […]