The Asian Development Bank (ADB) will make an investment of USD 100 million into the National Investment and Infrastructure Fund (NIIF) of India Fund of Fund (FoF).
With ADB’s investment into the NIIF platform, FoF has now secured USD 700 million in commitments. ADB will now join the government of India (GOI) and the Asian Infrastructure Investment Bank (AIIB) as an investor in the Fund. NIIF already counts CPPIB, Abu Dhabi Investment Authority, AustralianSuper, Ontario Teachers’ Pension Plan, Temasek, Axis Bank, HDFC Group, ICICI Bank and Kotak Mahindra Life Insurance as investors in the NIIF Master Fund, alongside the government of India.
FoF invests into a variety of sectors and strategies through third-party managed funds. So far it has made commitments to three Funds aggregating to over Rs 2,600 crore (USD 350 million). The three Funds are focused on green energy and climate; middle income and affordable housing; and entrepreneur-driven mid market growth companies, the statement added.
Aseem Infrastructure Finance (AIFL), the new NBFC-IFC, is expected to get the Reserve Bank of India (RBI) approval and will target broader segment of infrastructure lending market. With an initial pool of USD 400-500 million of seed capital, the fund plans to achieve a loan book of USD three billion in the next couple of years.
In April 2020, NIIF had launched a platform that will invest in road projects in India, by joining hands with ROADIS, a wholly owned subsidiary of the PSP Investments. The platform will invest up to USD two billion of equity to target toll operate transfer (TOT) models and acquisitions of the existing road concessions.
NIIF is also set to close its debut deal in India’s road sector as well as SWF will buy two road assets of Essel Group for an enterprise value of Rs 2,000 crore. NIIF will buy assets of Essel Infraprojects in Karnataka (Essel Devanahalli Tollway) near Bengaluru airport, and Telangana (Essel Dichpally Tollway).