Edelweiss MF to launch second tranche of Bharat Bond ETF, aims at raising Rs 14,000 crore

Edelweiss Asset Management on Friday announced the launch of second tranche of Bharat Bond ETF with two new series after the successful launch of the initial series of ETFs in December last year.

The Bharat Bond ETF programme is an initiative of the government from the Department of Investment and Public Asset Management. The latter has given the mandate to Edelweiss AMC to design and manage the product.

The two new Bharat Bond ETF series will have maturities of April 2025 and April 2031. New fund offer will start from July 14 and end on July 17.

Through the launch of these two new ETF series, Edelweiss Mutual Fund proposes to raise an initial amount of Rs 2,000 crore with a green shoe option of Rs 6,000 crore in 2025 maturity and initial amount of Rs 1,000 crore with a green shoe option of Rs 5,000 crore in 2031 maturity based on market demand.

The ETF will invest in constituents of the Nifty Bharat Bond Indices consisting of AAA rated public sector compes. Bharat Bond Fund of Funds (FOF) with similar maturities will also be launched for investors who do not have demat accounts.

"We hope that the Bharat Bond ETF programme achieves its ultimate objective of creating a liquid yield curve for CPSE bonds and helps further agenda of development of bond markets," said Rashesh Shah, Chairman and CEO of Edelweiss Group.

"We believe that the Bharat Bond ETF programme will keep growing and will provide a safe and secure investment avenue for investors and an easy way for CPSEs to raise funds," he said in a statement.

( With inputs from ANI )