Govt may raise ₹10,000cr via Bharat Bond ETF

The government is probably going to launch the following tranche of the Bharat Bond ETF by December and hopes to raise over ₹10,000 crore to fund growth plans of focal public sector ventures, as indicated by a finance ministry official.

The authority added that the asset necessities of CPSEs are being worked out and the third tranche of the exchange traded fund (ETF) will be launched before the end of the schedule year.

“We are settling on the sum to be raised however it would be over ₹10,000 crore,” the authority said.

Bharat Bond ETF is an exchange traded fund that puts resources into obligation of public area organizations. The ETF right now puts just in ‘AAA’- appraised obligations of public area organizations.

The fund raised through the obligation ETF helps in smoothening getting plans of the taking part CPSEs or public sector banks. It additionally helps them in gathering their capital expenditure needs.

The second tranche of the Bharat Bond ETF, which was dispatched in July 2020, was oversubscribed more than three times, gathering about ₹11,000 crore. It had gotten about ₹12,400 crore in its presentation offer in December 2019.