12-Dec-2022: NIIF managed fund invested in 16 entities covering ports and logistics, renewable energy, roads, digital infrastructure, healthcare and manufacturing among others
The National Investment and Infrastructure Fund (NIIF) is set up as a collaborative investment platform between Government of India, Global Investors, Multilateral Development Banks (MDB) and Domestic Financial Institutions. This was stated by Union Minister of State for Finance Dr Bhagwat Kishanrao Karad in a written reply to a question in Lok Sabha today.
Giving more information, the Minister stated that NIIF currently has three funds namely Master Fund, Fund of Funds and Strategic Opportunities Fund that have invested in 16 entities covering ports and logistics, renewable energy, roads, digital infrastructure, healthcare and manufacturing among others.
The Memorandum of Understanding (MOU) was signed in November 2022 to facilitate investment across multiple sectors in India through an India Japan Fund.
The Minister further stated that funds of NIIF have investments from:-
- Global investors such as Abu Dhabi Investment Authority (ADIA), AustralianSuper, Canada Pension Plan Investment Board (CPPIB), Ontario Teachers’ Pension Plan, PSP Investments, Temasek, US International Development Finance Corporation (US DFC)
- MDBs such as Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), New Development Bank (NDB) and
- Domestic Financial Institutions such as Axis Bank, HDFC Asset Management Company, HDFC Life Insurance, HDFC Limited, ICICI Bank and Kotak Life Insurance.
17-Nov-2022: Union Finance Minister Smt. Nirmala Sitharaman chairs 5th Meeting of Governing Council of National Investment and Infrastructure Fund (NIIF)
Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman chaired the 5th meeting of the Governing Council (GC) of National Investment and Infrastructure Fund (NIIF), in New Delhi, yesterday (17th Nov. 2022) late evening.
The GC noted that NIIF has developed into an internationally credible and commercially viable investment platform, backed by several highly respected global and domestic investors who have invested alongside the Government of India in NIIF Funds.
NIIF’s first bilateral fund - an “India Japan Fund” with contribution from GoI has been proposed through an MoU between National Investment and Infrastructure Fund Limited (NIIFL) and Japan Bank for International Development (JBIC). The MoU was signed recently on 9th November, 2022. This key update regarding bilateral engagements of NIIF was endorsed by the GC.
The GC appreciated that the two infrastructure Non-Banking Financial Companies (NBFCs), where NIIF has majority stakes, have increased their combined loan book from ₹4,200 crore to ₹26,000 crore in 3 years without experiencing any non-performing loans (NPLs) till date.
The GC also guided NIIF to undertake advisory activities pro-actively to support central and state governments to create a pipeline of investible PPP projects.
The Finance Minister asked the NIIFL team to build on the work done so far and leverage India’s attractive investment fundamentals to expand its operations. Smt. Sitharaman encouraged the team to continue discussions with investors from countries that are keen to invest in India.
The Finance Minister exhorted the NIIFL team also to explore opportunities under the National Infrastructure Pipeline, PM GatiShakti and National Infrastructure Corridor, which include a big pool of investible greenfield and brownfield investment projects, and to try and crowd in commercial capital into those opportunities.
During the meeting an update on the progress made by NIIF over the last few years and key learnings from its investment operations were presented to the Governing Council. The GC was apprised of the current status of the 3 funds that are currently managed by NIIFL – the Master Fund, the Fund of Funds (FoF), and the Strategic Opportunities Fund (SoF). The sectors that these funds focus on, the status of fund raise, and the kind of investments that have been made under them were shared with the GC. The GC was informed about the investments and performance of NIIF operating companies in sectors such as ports and logistics, renewable energy, and digital infrastructure besides its foray into sectors such as waste management, water treatment, healthcare, EV manufacturing.
The other members of the GC that attended the meeting were Shri Ajay Seth, Secretary, D/o Economic Affairs; Shri Vivek Joshi, Secretary, D/o Financial Services; Shri Dinesh Khara, Chairman, State Bank of India (SBI); Mr. Hemendra Kothari, Chairman, DSP Group; and Mr. T.V. Mohandas Pai, Chairman, Manipal Global.
5-Dec-2019: Canada Pension Plan Investment Board to invest up to US$600 million through National Investment and Infrastructure Fund (NIIF)
National Investment and Infrastructure Fund (NIIF) of India and Canada Pension Plan Investment Board (CPPIB) announced an agreement for CPPIB to invest up to US$600 million through the NIIF Master Fund. The agreement includes a commitment of US$150 million in the NIIF Master Fund and co-investment rights of up to US$450 million in future opportunities to invest alongside the NIIF Master Fund.
With CPPIB’s investment, NIIF Master Fund now has US$2.1 billion in commitments and has achieved its initially targeted fund size. In addition, NIIF Master Fund investors have co-investment rights of US$3 billion, which will enable the NIIF Master Fund to invest at the scale required for India’s large infrastructure requirements. The NIIF Master Fund invests equity capital in core infrastructure sectors in India, with a focus on transportation, energy and urban infrastructure.
CPPIB joins 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 Government of India.
CPPIB will also become a shareholder in National Investment and Infrastructure Fund Limited, NIIF’s investment management company.
About NIIF: NIIF is a fund manager that invests in infrastructure and related sectors in India. An institution anchored by the Government of India, NIIF is a collaborative investment platform for international and Indian investors with a mandate to invest equity capital in domestic infrastructure. NIIF benefits from its association with the Government yet is independent in its investment decisions being majority owned by institutional investors and managed professionally by a team with experience in investments and infrastructure. NIIF aims to make commercial investments in the sector at scale. NIIF Limited manages over US$4 billion of capital commitments across three funds, each with its distinct investment strategy. The funds have investment mandates to invest in infrastructure assets and related businesses that are likely to benefit from the long-term growth trajectory of the Indian economy.
About CPPIB: Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits in the best interests of 20 million contributors and beneficiaries. In order to build diversified portfolios of assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPPIB is governed and managed independently of the CPP and at arm’s length from governments. At September 30, 2019, the CPP Fund totaled $409.5 billion.
3-Apr-2019: Roadis, NIIF to invest $2 billion
Roadis, a private investor and operator of transport infrastructure worldwide and the National Investment and Infrastructure Fund (NIIF) have jointly set up a platform to invest in road projects in India. The platform would invest up to $2 billion of equity targeting toll-operate-transfer models, acquisitions of existing road concessions and investment opportunities in the road sector with an aim to create a large roads platform in the country.
6-Sep-2018: Temasek to invest $400 million in NIIF
Singapore-based global investment firm Temasek has signed an agreement to invest up to $400 million in the National Investment and Infrastructure Fund (NIIF) of India with an option for co-investment with NIIF in the future.
As part of the agreement, Temasek will join the Government of India, Abu Dhabi Investment Authority (ADIA), HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank as an investor in NIIF’s Master Fund and as a shareholder in National Investment and Infrastructure Limited, NIIF’s investment management company.
With this investment, NIIF Master Fund is now one of the largest infrastructure funds in India, and will continue to raise capital so that it can invest at the scale required for the large infrastructure requirements in India. NIIF’s Master Fund invests in core infrastructure sectors in India with a focus on transportation, energy and urban infrastructure.
3-Aug-2018: Strategic Investment Fund under NIIF
As on date, three funds have been established by the Government under the NIIF platform and registered with SEBI as Category II Alternative Investment Funds and National Investment and Infrastructure Fund II (“Strategic Fund”) is one of those three funds. The other two funds are National Investment and Infrastructure Fund (or Master Fund) and NIIF Fund of Funds – I.
The objective of National Investment and Infrastructure Fund II (“Strategic Fund”) is to invest largely in equity and equity-linked instruments. The Strategic Fund will focus on green field and brown field investments in the core infrastructure sectors.
The NIIF Funds work on a model whereby equity participation from strategic partners (including overseas sovereign / quasi-sovereign / multilateral / bilateral investors) is invited, alongside Government’s contribution. Government’s contribution / share in the corpus will be 49% in each entity set up as an AIF and will neither be increased beyond, nor allowed to fall below 49%. The whole of 49% would be contributed by the Government of India directly.
NIIF Fund of Funds-I’s first investment has been in the Green Growth Equity Fund (GGEF). Department for International Development (DFID), an arm of the UK government, has committed to invest GBP 120 million (equivalent to INR 1,080 crore) in GGEF and NIIF Fund of Funds-I also committed to invest an equivalent amount.
24-Jun-2018: AIIB to invest $200 Mn in NIIF
The Asian Infrastructure Investment Bank will invest $200 million in India’s National Investment and Infrastructure Fund even as it assuaged concerns over China’s dominance over it and stressed that it works for all its shareholders.
The AIIB will invest $100 million in the NIIF’s fund of funds at present, followed by another $100 million later.
The AIIB has approved the concept note for lending $200 million to NIIF. Its board of directors at its meeting will take up the proposal for the first tranche of $100 million and the proposal for the second tranche would be taken up later.
The fund of funds will be invested in other funds. Two such funds have already been conceptualised, including a green growth fund which will also have investments from DFID.
India is already the largest borrower from the AIIB with $1.2 billion financing in six projects. In total, the AIIB has invested $4.39 billion in projects. India is the second largest shareholder of the AIIB with an 8.72 per cent stake.
The two-day annual meeting is being attended by Finance Ministers or representatives from all of AIIB’s member countries, as well as Finance Minister Piyush Goyal and Prime Minister Narendra Modi.
Though the AIIB has 86-member countries, China has the largest shareholding at about 31 per cent leading to concerns that it may increase the country’s influence across the region. There is no ban on investments by Chinese companies into India, except on security concerns or if the project is aimed at encouraging the Make in India initiative.
NDB credit rating agency: The proposal for setting up a credit rating agency for BRICS country is at an advanced stage. It is expected to move forward at the BRICS summit in Johannesburg in July.
23-Jan-2018: DP World, India’s NIIF to set up $3 billion investment platform
The National Investment and Infrastructure Fund (NIIF), India’s first sovereign wealth fund, and Dubai-based ports operator DP World Pvt. has announced the creation of an investment platform to invest up to $3 billion in ports, terminals, transportation and logistics businesses in India.
This is the first investment platform from NIIF and will see investment up to $3 billion of equity to acquire assets and develop projects in these sectors. The platform will also look at opportunities beyond sea ports such as river ports and transportation, freight corridors, port-led special economic zones, inland container terminals and logistics infrastructure, including cold storage.
The formation of partnership follows the memorandum of understanding signed in May 2017 and the visit to India by Sheikh Mohammed bin Zayed al Nahyan, crown prince of Abu Dhabi, and Sultan Ahmed bin Sulayem, chairman and CEO of DP World Group, in February 2016.
With a portfolio of 78 operating marine and inland terminals, DP World, majority owned by the Dubai government, is the world’s fourth biggest container port operator.
This is NIIF’s first investment and is a good example of how NIIF can work with international capital and expertise to invest at scale to build critical infrastructure in India. Under the terms of the pact, Abu Dhabi Investment Authority will invest $75 billion in India over a 10-year period. Out of the total, an amount of $1 billion has already been transferred to NIIF. The funds will be invested in roads and railway projects
Set up in 2015, the Indian government had created NIIF to catalyse capital from international and domestic investors into energy, transportation, housing, water, waste management and other infrastructure and allied sectors in India. NIIF’s strategy includes anchoring equity, quasi-equity and debt funds in partnership with investors targeting investments across the relevant sectors in India.