MUMBAI:
The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) has approved an equity investment of USD 100 million in India’s National Investment and Infrastructure Fund’s (NIIF) Fund of Funds as Phase I for the NIIF Fund of Funds initial closing. AIIB is considering a further investment of USD 100 million as part of Phase II for the final closing, which would bring the bank’s total commitment to USD 200 million.
NIIF, anchored by the Government of India, is a collaborative investment platform for international and domestic investors that are keen on investing in commercially viable Indian infrastructure projects.
NIIF’s Fund of Funds will anchor and/or invest in funds managed by fund managers who have good track records in infrastructure and associated sectors in India. Some of the sectors of focus include Green Infrastructure, Mid-Income & Affordable Housing, Infrastructure services and allied sectors. NIIF Fund of Funds recently announced its first investment, Green Growth Equity Fund, which will invest in renewable energy, clean transportation, water, sanitation and waste management.
AIIB will provide expertise to enhance NIIF’s environmental and social risk management capabilities to improve and monitor environmental and social performance across the portfolio investments.
“Our investment in the NIIF reflects AIIB’s commitment to support the Government of India in its efforts to promote investment in infrastructure and to mobilize private capital for development,” said AIIB Vice President and Chief Investment Officer D.J. Pandian.
“The NIIF will provide access to a diversified range of Sub-Funds and trigger a multiplier effect in attracting capital,” said AIIB Director General of Investment Operations Dong-Ik Lee. “With AIIB’s investment in the NIIF, we will help pool commitments from long-term investors such as multilateral institutions, sovereign wealth funds, pension funds and insurance companies—within and outside India—to make investments in the country’s infrastructure sector.”
