Global Economy

Govt scouts for advisor to manage Bharat Bond ETF's AUM worth Rs 50,000 cr

The government is looking to appoint a consultant to advise it on managing the Bharat Bond ETF, whose asset under management (AUM) has crossed Rs 50,000 crore since its launch in 2019. The Bharat Bond Exchange Traded Fund (ETF) comprises bonds of CPSEs, CPSUs, Central Public Financial Institutions (CPFIs) and other government organisations. These institutions have issued bonds and raised debt of Rs 33,400 crore since 2019, using the ETF platform.

The Department of Investment and Public Asset Management (DIPAM) on Friday issued an RFP for appointing an advisor/consultant with experience and expertise in advising or who has been involved in a relevant capacity in the launch of an ETF/Debt ETF /Debt MF/ index linked fund/corporate bonds issuances.

Merchant bankers/investment bankers/consulting firms/financial institutions; either individually or as a consortium; can bid to act as the advisor/consultant.

The advisor will analyse, assist and advise on the possible monetisation of the debt of the select CPSEs through market-oriented instruments.

The last date for putting in bids is December 26.

“The Advisor will be required to advise and work with the government in all aspects for the launch of new offering and managing/rebalancing of existing Bharat Bond ETF,” DIPAM said in the RFP. The advisor would monitor and submit a half-yearly report on the key statistics of the existing ETF product. Asset Under Management (AUM) of the ETF has significantly grown from around Rs 12,000 crore at the time of launch in 2019 to more than Rs 50,000 crore till date, DIPAM said in the RFP.

The maiden offering of Bharat Bond ETF was launched in 2019, helping central public sector enterprises raise Rs 12,400 crore. In the second and third tranches, issued in 2020 and 2021, it had raised Rs 11,000 crore and Rs 6,200 crore, respectively. In the fourth tranche in 2022, the ETF raised Rs 2,800 crore.

Cumulatively, the ETF has raised Rs 33,400 crore in its four offerings so far.

So far, Bharat Bond ETFs have been launched with six maturity dates in 2023, 2025, 2030, 2031, 2032 and 2033.


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