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Bharat Bond ETF second cycle launched, base issue size of Rs 3,000 crores

Bharat Bond ETF

On Friday, Edelweiss Mutual Fund started the second cycle of the Bharat Bond exchange-traded fund (ETF) for an initial capacity of Rs 3,000 crore, with a choice to retain oversubscribing of up to Rs 11,000 crore.
In February, Finance Minister Nirmala Sitharaman had stated the launch of the second cycle with Edelweiss as the fund manager, and AK Capital as the advisor to the government.

The first cycle — maturing in 2023 and 2030 — began in December the previous year, and mobilized Rs 12,400 crore. There was also a new fund offer (NFO) of Rs 7,000 crore, which was oversubscribed 1.8 times.
The two new Bharat Bond ETF series will mature in April 2025 and April 2031. Also, NFO will begin from July 14 and end on July 17.

Edelweiss Mutual Fund intends to establish an introductory amount of Rs 2,000 crore with a greenshoe option of Rs 6,000 crore in 2025 maturity and an initial Rs 1,000 crore with a greenshoe option of Rs 5,000 crore in 2031 timeline.
The ETF will invest in the Nifty Bharat Bond Indices constituents, consisting of AAA-rated public sector companies.

The mutual fund will also start a Fund of Funds with similar maturities for those who do not have Demat accounts.

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