The second tranche of Bharat Bond ETF, through which the government is looking to raise up to Rs 14,000 crore, will open for subscription on July 14. The subscription will be closed on July 17, Edelweiss AMC said.
This comes after the successful launch of the initial series of the ETF in December 2019.
Edelweiss Asset Management in May said it will launch the second tranche of Bharat Bond ETF in July, with two new series, to raise up to Rs 14,000 crore.
Through the launch of the two new ETF series, Edelweiss Mutual Fund proposed to raise an initial amount of Rs 3,000 crore with a green shoe option of Rs 11,000 crore based on market demand.
The two new series will have maturities of April 2025 and April 2031.
The Bharat Bond ETF programme is a government initiative and Edelweiss AMC has been given the mandate to design and manage the product.
The ETF will invest in constituents of the Nifty Bharat Bond Indices, consisting of AAA-rated public sector companies.
Bharat Bond Funds of Funds (FOF) with similar maturities would also be launched for investors, who do not have demat accounts.
The first tranche of Bharat Bond ETF raised over Rs 12,400 crore, from a diverse set of investors. Further, after the new fund offer (NFO), the Bharat Bond ETF program continued to see healthy investor participation and good liquidity on the exchanges.