The ETF's new fund offer, which only invests in corporate bonds with an AAA rating issued by state-run enterprises, will go on sale on December 2 and close to subscriptions on December 8.
According to Edelweiss Mutual Fund, the ETF's manager, the first corporate bond exchange-traded fund (ETF) in India will debut its fourth tranche on December 2.
The ETF's new fund offer, which solely invests in corporate bonds with a AAA rating issued by state-run enterprises, will go on sale on December 2 and shut to subscriptions on December 8.
The ETF's initial offering was introduced in late 2019.
Edelweiss Mutual Fund expects to raise at least 10 billion rupees ($123.29 million) through the most recent tranche, with a greenshoe option to keep up to an additional 40 billion rupees.
According to the fund house, this series will mature in April 2033 and offer a 7.50% yield to maturity.
The most recent ETF will include documents from organisations including the National Bank for Agriculture and Rural Development, the National Highways Authority of India, Power Finance Corp., and NTPC.
To date, Edelweiss, which creates and oversees ETFs for the government, has released three tranches of ETFs with a total value under management of more than 500 billion rupees.
As of Nov. 30, these ETFs had produced returns over the previous year that ranged from 2% to 4%, according to the fund house.
According to fund managers, the central bank's aggressive rate hikes this year have had an impact on the returns on debt schemes.
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