Reported by: banking|Updated: August 13, 2018
The board of directors of the Asian Infrastructure Investment Bank (AIIB) has approved an equity investment of $100 million in India’s National Investment and Infrastructure Fund’s (NIIF) ‘Fund of Funds’, as part of first phase, reports Banking Frontiers. The decision was taken at the bank’s 3rd AGM held in Mumbai recently. AIIB is also considering a further investment of $100 million as part of second phase.
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.
AIIB chief investment officer D.J. Pandian said the 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. “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,” Pandian added.