Informist, Tuesday, Jun 28, 2022
By Sagar Sen and Krity Ambey
NEW DELHI – The government may launch the next tranche of the Bharat Bond Exchange-Traded Fund in the last quarter of 2022, a senior finance ministry official said.
“We will soon initiate talks with public sector companies to take stock of their fund requirements,” the official told Informist.
“We had initially thought of two tranches of the ETF every year. However, we realised that one tranche every year is a much more efficient way of developing a yield curve,” the official said.
The last tranche of Bharat Bond ETF, managed by Edelweiss Mutual Fund, was in December. The first was launched in December 2019.
The exchange-traded fund invests in bonds issued by constituents of the Nifty Bharat Bond Indices, consisting of ‘AAA’ rated public sector companies.
Currently, Nifty Bharat Bond Index series has five indices–maturing in 2023, 2025, 2030, 2031 and 2032.
According to Finance Minister Nirmala Sitharaman, the Bharat Bond ETF has assets under management of over 530 bln rupees. End
Edited by Maheswaran Parameswaran
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