Edelweiss AMC launches second tranche of Bharat Bond ETF

NEW DELHI: Edelweiss AMC on Friday formally launched the second series of Bharat Bond ETF that seeks to raise up to Rs 14,000 crore from retail and institutional investors.

The issue will open for initial investors on July 14 and close on July 17. Edelweiss AMC, which manages the fund, said a quarter of the investment quota will be reserved for retail investors and the rest will be offered to institutional investors and HNIs.

Rashesh Shah, CEO of Edelweiss Financial Services said it is a well crafted instrument at a time when the debt market is in a turmoil and mutual funds are seeing redemptions.

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 first tranche of Bharat Bond ETF raised over Rs 12,400 crore from a diverse set of investors in December 2019. Further, after the new fund offer (NFO), the Bharat Bond ETF program continued to see healthy investor participation and good liquidity on the exchanges.

Radhika Gupta, CEO of Edelweiss AMC added that the fund house may launch longer term bond ETFs in coming future.

NSE Indices, in order to fulfil the requirement for the launches, launched two more indices -- Nifty Bharat Bond Index - April 2025, and Nifty Bharat Bond Index - April 2031, under the Nifty Bharat Bond Index series on Thursday.