NIIFL and JBIC sign MOU to enhance Japanese investments into India
Mumbai, November 10, 2022
National Investment and Infrastructure Fund Limited (NIIFL) today said it had signed a memorandum of understanding (MOU) with Japan Bank for International Cooperation (JBIC) to promote and enhance Japanese investments into India.
The MOU outlines a partnership framework between NIIFL and JBIC which is considering the establishment of a bilateral India-Japan Fund (IJF), a press release from NIIFL said.
The release said JBIC and the Government of India would invest in the India-Japan Fund, which will make equity investments in environmental preservation and low carbon emission strategies.
IJF will also enhance cooperation between the two countries by investing in strategic partnerships between Japanese and Indian companies and promoting business collaboration across multiple sectors in India.
In addition, JBIC will consider providing debt financing under their “Global action for Reconciling Economic growth and ENvironmental preservation” (GREEN) initiative to investee companies of funds managed by NIIFL.
NIIFL is already an active investor in sustainable and climate friendly technologies and solutions through its investments in Ayana Renewable Power, IntelliSmart Infrastructure, Ather Energy and the Green Growth Equity Fund. The India-Japan Fund will further contribute to NIIFL having a more significant impact in this area, the release said.
Sujoy Bose, Managing Director & Chief Executive Officer, NIIFL, said, “We are delighted to partner with JBIC for this initiative. The climate sector and the energy transition in India will offer significant opportunities for investment and the India-Japan Fund, which is expected to be operational early next year, will participate in these opportunities and promote collaboration between Indian and Japanese companies. Through this partnership we aim to support the economic and environmental cooperation between India and Japan, which should translate to increased investment by Japanese companies and investors into India.”
NIIFL is a collaborative investment platform for international and Indian investors, anchored by the Government of India, which manages funds with investments in different asset classes and diversified sectors that generate attractive risk-adjusted returns. NIIFL manages over $4.3 billion of equity capital commitments across its three funds - Master Fund, Fund of Funds, and Strategic Opportunities Fund, each with a distinct investment strategy committed to support the country’s growth needs.
JBIC is a policy-based financial institution of Japan, and conducts lending, investment and guarantee operations while complementing the private sector financial institutions. JBIC’s mission is to contribute to the sound development of Japan and the international economy and society by conducting its operations.