NIIFL announces final close of NIIF Master Fund at $ 2.34 billion

NIIFL announces final close of NIIF Master Fund at $ 2.34 billion

Mumbai, December 21, 2020

National Investment and Infrastructure Fund Limited (NIIFL) today announced that it has completed fund raising for its NIIF Master Fund at $ 2.34 billion.

The Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, U.S. International Development Finance Corporation (DFC), the development finance institution of the United States federal government, and Axis Bank, an existing investor in the NIIF Master Fund signed agreements for investments of approximately 107 million cumulatively with the NIIF Master Fund.

"These investments mark the fifth and Final Close of the NIIF Master Fund. The Fund has achieved a size of the INR equivalent of USD 2.34 billion, exceeding its target of USD 2.1 billion," a press release from NIIFL said.

DFC and PSP Investments join the Government of India (GoI), Abu Dhabi Investment Authority (ADIA), AustralianSuper, CPP Investments, Ontario Teachers’ Pension Plan, Temasek, HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank as investors in the Fund.

International investors have rights to co-invest an additional USD 3 billion alongside the Fund.

DFC and PSP will join the other investors of the Master Fund as shareholders of NIIF Ltd, the investment manager, the release said.

"The NIIF Master Fund primarily invests in operating assets in core infrastructure sectors, primarily transportation and energy. As India’s largest domestic infrastructure equity fund, it is well positioned to invest at scale in large infrastructure projects which are strategic and crucial for the development of the country. The fund has successfully anchored platforms in ports and logistics, renewable energy, smart meters and roads sectors," it said.

Tarun Bajaj, Secretary, Department of Economic Affairs, Ministry of Finance, and Member of the Board, NIIF Limited, said, “I am happy to see that in a short span of time, NIIF has been successful in channelizing domestic and international capital into the country. We are also pleased to see that some of the largest global investors of the world have invested in NIIF Master Fund and the Fund has achieved its Final Close, exceeding its original target size. We look forward to continue working with NIIF and its investors and extend our support in furthering the growth of the Indian Infrastructure sector. It is a matter of extreme satisfaction getting two marquee international investors to invest in NIIF immediately after Virtual Global Investor Roundtable (VGIR) 2020.”

Sujoy Bose, Managing Director and CEO, NIIF, said, “We are pleased to announce that the NIIF Master Fund has surpassed its original fund-raising target of USD 2.1 billion with its Final Close at USD 2.34 billon plus USD 3 billion in co-investment rights. We are delighted that DFC and PSP Investments are investing in this final round and Axis Bank is increasing its investment in the Fund. In addition to the additional scale that the fund gains from this investment, NIIF will benefit from PSP Investments’ strong global infrastructure investing experience, while DFC brings along opportunities for NIIF to continuously learn about highest global standards such as the Blue Dot Network and commitment to best practices with respect to transparency and management of environmental and social risks."

"As the Final Close of the NIIF Master Fund is now achieved, we are delighted to launch the fund-raise for the NIIF Strategic Opportunities Fund (SOF), with a target size of the INR equivalent of USD 2.1 billion. SOF will become one of the largest India-focused Private Equity funds, which will enable the fund to operate at a unique scale in sectors that offer significant growth opportunities," he added.

Patrick Samson, Senior Managing Director and Global Head of Infrastructure Investments, PSP Investments, said, “This investment, alongside leading global investors, further demonstrates PSP Investments’ long-term commitment to invest in the development of Indian infrastructure. We are pleased to continue to grow and strengthen our partnership with NIIF alongside our transportation platforms, ROADIS and AviAlliance, to support the economic growth of the country.”

”DFC’s investment will support the growth and development of a key partner in the Indo-Pacific and allow DFC to facilitate investment in strategic infrastructure projects throughout India,” said DFC Chief Executive Officer, Adam Boehler. “DFC brings its commitment to high standards in all of our projects, and we are excited to establish this partnership with NIIF.”

NNN

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