Bharat Bond ETF: Edelweiss Mutual Fund Launches Fourth Tranche Of India's First Corporate Bond ETF

Edelweiss Mutual Fund is all set to launch the fourth tranche of the BHARAT Bond ETF. The BHARAT Bond ETF, India’s first corporate bond exchange-traded fund (ETF), is a central government initiative. This ETF only invests in ‘AAA-rated bonds of public sector companies.

Edelweiss Asset Management is the fund manager of the BHARAT Bond ETF scheme. The new fund offer (NFO) of the ETF will open on December 2, 2022, and close for subscription on December 8, 2022.

This new tranche of the BHARAT Bond ETF and the BHARAT Bond Fund of Fund (FoF) series will be set to mature in April 2033. Through this new tranche, Edelweiss Mutual Fund plans to raise ₹1,000 Crore, with a greenshoe option of another ₹4,000 Crore.

The fourth tranche of the BHARAT Bond ETF will include papers issued by the National Highways Authority of India, the National Bank for Agriculture and Rural Development, the Power Finance Corporation and NTPC among others.

The first offering of BHARAT Bond ETF was launched in 2019, and so far, five maturities of the ETFs have been launched- 2023, 2025, 2030, 2031, & 2032.

The secretary of DIPAM (Department of Investment and Public Asset Management), Ministry of Finance, Tuhin Kanta Pandey said, “‘BHARAT Bond ETF programme has received an enthusiastic response from all categories of investors since its launch. BHARAT Bond has created a unique opportunity for all Indian investors to invest in PSU Bonds and fuel India’s growth story. Crossing a landmark ₹50,000 Crore. AUM is a testament that BHARAT Bond has emerged as a trusted investment avenue with better tax efficiency for many Indian investors."

Talking about the BHARAT Bond ETF, Radhika Gupta, managing director and chief executive officer of Edelweiss Mutual Fund said, “Target Maturity Fund category is growing at an exciting pace post the launch of Edelweiss MF’s BHARAT Bond ETF. Investing in long-term debt has been brought to the forefront by these funds. BHARAT Bond ETF now has six maturities – from 2023 to 2033, which will allow investors to select the right maturity as per their investment goals. We take great pride in launching BHARAT Bond ETF along with the Government of India, which paved way for an entire new Mutual Fund category and changed India’s investing landscape.”