Bharat Bond ETF: Anchor investors put in bids worth Rs 3,000 crore

The Bharat Bond ETF received an overwhelming response from institutional players on Thursday with the portion reserved for anchor investors garnering bids worth nearly Rs 3,000 crore, around 1.7 times of the size. Bharat Bond ETF, through which the government seeks to mop up Rs 15,000 crore, opened for subscription on Thursday for anchor investors and would open for retail investors from Friday.

In a tweet, Department of Investment and Public Asset Management said that the new fund offer (NFO) of Bharat Bond ETF was launched on Thursday and the anchor book was subscribed by 1.7 times at Rs 2,980 crore.

As much as 25 per cent of the initial issue size of Rs 7,000 crore was reserved for anchor investors.


The offer would remain open for all investors during December 13-20 and investors can subscribe to the ETF with a minimum unit size of Rs 1,000.

Edelweiss Asset Management Company is managing the issue of Bharat Bond ETF, the first corporate bond exchange-traded fund in the country.

"Through the ETF, Edelweiss Mutual Fund proposes to raise an initial amount of Rs 3,000 crore with a green shoe option of Rs 2,000 crore in the 3-year maturity period (2023) and Rs 4,000 crore with a green shoe option of Rs 6,000 crore in the 10-year maturity bucket (2030)," Edelweiss AMC said.

The ETF would invest only in AAA-rated bonds of public sector companies and would have target maturity structures.

The ETF with a 3-year maturity would follow the Nifty Bharat Bond Index-April 2023 and the one with a 10-year maturity would follow the Nifty Bharat Bond Index-April 2030.