[ad_1]

The second series of India’s first ever corporate bond exchange traded fund, the Bharat Bond Exchange Traded Fund (ETF) received an outstanding response, oversubscribed more than three times, top officials said.
“The estimated collection around Rs. 10,000 crores with wide participation across categories… Final numbers are still being tallied and will be released by Monday,” TK Pandey, secretary of department of investment and public asset management (DIPAM) said in a statement on Friday.
The second series has a base issue size of Rs 3,000 crore and a green-shoe option of Rs 11,000 crore, with maturities of April 2025 and April 2031. The ETF invests in constituents of the Nifty Bharat Bond Indices, consisting of AAA rated public sector companies.
The fund has been opened to institutional investors, with a fourth being reserved for retail investors.
The proceeds will be used as additional funding for CPSEs and other government organisations to meet capital expenditure and borrowing requirements.
The government expects the program to deepen the bond market further in India, even during the uncertain times of Covid 19 pandemic.

The second series is expected to perform better than the first series, through which the government raised Rs 12,500 crore last year, with the issue subscribed nearly 1.8 times.

[ad_2]

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here