ADB to infuse $100 mn in National Investment and Infrastructure Fund

With ADB’s investment into the NIIF platform, FoF has now secured $700 million in commitments

Asian Development Bank, ADB, National Investment and Infrastructure Fund of India Fund of Fund, Government of India, NIIF, Asian Infrastructure Investment Bank, CPPIB, Abu Dhabi Investment Authority, AustralianSuper, Ontario Teachers’ Pension Plan, Temasek, Axis Bank, HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance, NIIF Master Fund, Green energy and climate, Middle-income and affordable housing, Entrepreneur-driven mid-market growth companies, Aseem Infrastructure Finance, PSP Investments, ROADIS, Toll operate transfer models, SWF, Essel Group, Essel Infraprojects, Karnataka, Essel Devanahalli Tollway, Bengaluru airport, Telangana, Essel Dichpally Tollway

The Asian Development Bank (ADB) will make an investment of $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 $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.

NIIF Fund of Funds was established in 2018 with the objective of creating a vehicle to provide India-focused private equity fund managers with a go-to institutional investor operating at scale and based in 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 ($350 million). The three funds are focused on green energy and climate; middle-income and affordable housing; and entrepreneur-driven mid-market growth companies.

Aseem Infrastructure Finance (AIFL), the new NBFC-IFC, is expected to get the RBI approval and will target broader segment of infrastructure lending market. With an initial pool of $400-500 million of seed capital, the fund plans to achieve a loan book of $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 $2 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).

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