The Bharat Bond ETF has closed for subscription on Friday with over-subscription of 1.7 times, accumulating Rs 12,000 crore against its base size of Rs 7,000 crore.

"India's first corporate Bond ETF, Bharat Bond ETF, has received a great response from investors across different segments. The issue was over-subscribed approximately 1.7 times, collecting about Rs 12,000 crore. Information is subject to further update," DIPAM Secretary Tuhin Kanta Pandey said in a tweet.

The exchange-traded fund will invest only in AAA-rated bonds of public sector companies and will have target maturity structures. The ETF with a 3-year maturity will follow the Nifty Bharat Bond Index-April 2023 and the one with a 10-year maturity will follow the Nifty Bharat Bond Index-April 2030.

The yield as on December 5 , 2019, of Nifty Bharat Bond Index-April 2023 is 6.69 per cent and the Nifty Bharat Bond Index-April 2030 is 7.58 per cent.

The government is trying to meet Rs 1.05 lakh crore disinvestment target.IANS