Bharat Bond exchange trade fund (ETF), a key instrument for central public sector enterprises (CPSEs) to raise debt capital from a larger pool of sources including retail investors, is looking to mobilise over Rs 34,000 crore in FY21, up 174% over such funds raised by it during the last fiscal year. As the Centre wants to assist CPSEs in need of capital – many state-run firms through which the government implements its various schemes are constituents of Bharat Bond ETF – debt mobilisation via this route might rise further to Rs 50,000 crore or higher in FY22 and beyond, official sources said. From the perspective of investors, the quasi sovereign nature of the CPSE bonds in the index is an attraction, so are the low entry barrier and expense ratio. According to a source, Bharat Bond’s second tranche will hit the market in July with a base offer size of Rs 3,000 crore and a green shoe option to raise another Rs 11,000 crore by retaining extra subscriptions. The funds collected will be invested in two new series of AAA-rated CPSE bonds with maturity profile of 5 years and 11 years, depending on the choice of investors.