NIIF Raises Rs 19,000 Crore In First Close Of Second Infrastructure Fund, Crosses 60% Of Rs 30,000-Crore Target
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NIIF Infrastructure Fund II has raised Rs 19,000 crore in its first close, with backing from the Government of India and global and domestic investors.
The National Investment and Infrastructure Fund has raised Rs 19,000 crore, or around $2 billion, in the first close of its second infrastructure fund, taking it past 60% of the overall Rs 30,000-crore fundraising target.
NIIF said on Monday, August 31, that the first close of NIIF Infrastructure Fund II was anchored by the Government of India and backed by a mix of global sovereign and pension funds, insurers and Indian financial institutions, according to CNBC-TV18.
Global investors include AustralianSuper, CPP Investments, a wholly owned subsidiary of the Abu Dhabi Investment Authority, Ontario Teachers' Pension Plan and Temasek. Domestic commitments have come from ICICI Bank, HDFC Bank, Axis Bank, Kotak Life Insurance and HDFC Life Insurance.
NIIF Infrastructure Fund II: Where Will It Invest?
The new fund will target opportunities across energy, transport and digital infrastructure, while also looking at urban infrastructure and electric mobility.
NIIF expects to mobilise another Rs 9,000 crore, or around $950 million, through co-investment capital alongside the fund. This would give investors the option to participate separately in selected transactions beyond their commitments to the main fund.
The second vehicle builds on NIIF's first infrastructure fund, which raised Rs 16,000 crore ($2.34 billion) and invested across renewable energy, transmission and distribution, battery storage, roads, ports and logistics, airports, data centres and smart metering.
Several investors from the first fund have also committed to the second vehicle, according to NIIF, highlighting continued institutional interest in India's infrastructure expansion.
NIIF's infrastructure strategy covers the investment lifecycle from origination and development to operations and eventual realisation. The fund manager has previously announced and completed exits from investments across renewable energy, road assets and smart metering.
NIIF Infrastructure Fund II: What Management Said
NIIF Managing Director and CEO Sanjiv Aggarwal said the latest fundraise reflects continued confidence among its investment partners in India's infrastructure opportunity and the fund manager's ability to deploy long-term capital with discipline, sector expertise and strong governance.
“India’s infrastructure build-out is creating opportunities at scale, and NIIF is well positioned to connect global and domestic institutional capital with high-quality businesses,” Aggarwal said.
Vinod Giri, Managing Partner, Infrastructure, NIIF, said the second fund would build on the operating capabilities developed through its predecessor.
“We will continue to create infrastructure platforms at scale, take a hands-on approach to value creation and invest selectively across both established and emerging infrastructure sectors,” Giri said.
“With a strong pipeline already in place, we see significant opportunities to deploy capital where NIIF can bring sector expertise, operating capability and execution at scale,” he added.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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