Bharat Bond ETF NCD: Bid Submission for PFC Bharat Bond ETF Non-convertible debentures (NCD) will begin on December 13, between 10:30 to 11:30 am on NSE EBP. It is going to be a closed-book bidding.  

The issue size of the same will be Rs. 120 Crs + Rs. 350 Crs (Green Shoe). The tenor will be of 10 Years 4 Months 1 Day (15th April 2033). 

The bidders need to complete the pay-in on the allotment date scheduled on December 14.  The allocation method is going to be either single-priced or coupon based or spread.  

Credit Rating agencies like CRISIL, CARE & ICRA have marked the ETF as AAA/Stable. 

The government has launched another tranche of its flagship Bharat Bond ETF (exchange-traded fund). It is India's first corporate bond exchange-traded fund.

The ETF is an 11-year product maturing in April 2033  and is referred to as Bharat Bond ETF - April 2033. The Bharat ETF that opened on December 3 remained open till December 8 for the subscription. Edelweiss AMC is managing the Bharat Bond ETF. 

What are Bond ETFs? What is Bharat Bond ETF?

Bond ETFs are a type of ETF that exclusively invests in bonds. The underlying index consists of AAA-rated public sector undertakings, meaning it will invest only in AAA-rated corporate bonds issued by state-run companies.   

Five tranches of Bharat Bond ETFs have been launched which will mature in 2023, 2025, 2030, 2031, & 2032. 

Bharat Bond ETF is a target-maturity bond ETF. The government launched the first offering of the ETF in 2019. Since then, the asset under management (AUM) of the ETF has crossed the Rs 50,000 crore mark. Through the fourth tranche, the government aims to raise Rs 1,000 crore. 

“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," Tuhin Kanta Pandey, Secretary, DIPAM, Ministry of Finance said in a recent statement.