The Bharat Bond ETF, the country’s first corporate bond exchange traded fund, closed on Friday with a subscription of 1.7 times.

The issue garnered Rs 12,000 crore compared with the 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 subscribed 1.7 times, collecting about Rs 12,000 crore. The information is subject to further update,” Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey said in a late evening tweet on Friday.

DIPAM had given the mandate to Edelweiss AMC to design and manage the product. The minimum amount that investors could put in was fixed at Rs 1,000 and in multiples of Rs 1,000 thereafter.

The ETF was expected to will help deepen the corporate bonds markets and enhance retail participation and it will invest only in AAA rated bonds of public sector units. It had proposed to raise an initial amount of Rs 3,000 crore with a green shoe option of Rs 2,000 crore in the three-year maturity period and Rs 4,000 crore with a green shoe option of Rs 6,000 crore in the 10-year maturity bucket.

The ETF with a three 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. Investors who hold these ETFs for more than three years will get the benefit of capital gains with indexation.