The ETF’s new fund offering, which invests only in AAA-rated corporate bonds issued by publicly traded companies, will open on December 2 and close to subscriptions on December 8.
The ETF’s first offering launched in late 2019.
Through the last phase, the Edelweiss Mutual Fund plans to raise at least 10 billion rupees ($123.29 million), with the option of over-allotting it to maintain an additional 40 billion rupees.
The series will mature in April 2033 and offer a yield to maturity of 7.50%, the fund said.
The new ETF will cover papers published by the National Bank for Agriculture and Rural Development, India’s National Highways Authority, Power Finance Corp and NTPC among others.
Edelweiss, who designs and manages ETFs on behalf of the government, has so far launched the ETF through three stages with total assets under management of over Rs 500 billion.
Over the past year, this ETF has generated returns in the 2-4% range as of November 30, according to the fund’s firm.
Fund managers say yields on debt programs have taken a hit this year due to the central bank’s aggressive rate hikes.
($1 = 81.1120 Indian rupees)
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