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The Finance Ministry has initiated the process to launch a new tranche of the CPSE (Central Public Sector Enterprises) Bond issue, better known as Bharat Bond ETF (Exchange Traded Fund), by inviting proposal to appoint and legal advisor.
“The Advisor will analyze, assist and advice on the possible monetization of the Debt of the select CPSEs through market-oriented instruments,” DIPAM (Department of Investment and Public Asset Management) said in the Request for Proposal (RFP) document related with the appointment of an advisor or consultant. Similarly, a legal advisor to assist in the process of management of Bharat Bond ETF. Bid for advisor and legal advisor can be submitted till December 26.
The Bharat Bond ETF program is an umbrella Bond ETF under which multiple issuances are possible. The ETF tracks the underlying index. This is done through globally accepted methods like risk replication and security selection etc. as approved by SEBI. Bharat Bond ETF was launched in December 2019 which was the first instrument of its kind based on high quality public-sector bonds.
The First Tranche of Bharat Bond ETF (BBETF) was launched in December 2019 with three and 10 years maturities i.e., BBETF - 2023 and BBETF - 2030 raising over ₹12,400 crore which was 1.7 times the base size of ₹7,000 crore. A total of 54,217 retail investors participated in the NFO (New Fund Offering).
The Second Tranche of BBETF was launched in July 2020 with five and 11 years maturities i.e. BBETF – 2025, BBETF -2031 raising over ₹11,000 crore which was 3.7 times the base size of ₹3,000 crore. A total of 39,272 retail investors participated in the NFO.
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The Third Tranche BBETF was launched in December 2021 with a maturity of 10+ years i.e. BBETF - 2032 raising over ₹6,200 crore which was 6.2 times of the base size of ₹1,000 crore. A total of 12,330 retail investors participated in the NFO.
The Fourth Tranche (New Fund Offer-NFO) of BBETF was launched in December 2022 with a maturity of 10+ years i.e., BBETF – 2033 raising over 2800 crore which was 2.8 times the base size of ₹1,000 crore. A total of 9,430 retail investors participated in the NFO. The Asset Under Management (AUM) of BBETF has significantly grown from around ₹12,000 crore at the time of launch in 2019 to more than ₹50,000 crore till date
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