NIIF Aims to Raise INR 20,000 Cr for Infrastructure Investment Trust
India’s National Investment & Infrastructure Fund (NIIF) is actively engaged in discussions to raise a minimum of INR 20 billion ($244 million) for an infrastructure investment trust, as per sources familiar with the matter.
Sources reveal that the proposed investment vehicle is set to include select assets from Athaang Infrastructure, an entity specializing in toll road operations. These sources, who preferred to remain anonymous due to the confidential nature of the information, further disclosed that the fundraising efforts are expected to be conducted through a private placement, with the targeted completion by September.
NIIF represents a significant initiative by India to establish a domestic capital-raising framework to address the current shortfall in infrastructure expenditures. Notably, prominent investors in NIIF include the Abu Dhabi Investment Authority and Singapore’s Temasek Holdings Pte, as indicated on the official NIIF website.
Infrastructure investment trusts, commonly known as InvITs, operate similar to mutual funds by facilitating the consolidation of assets for project financing, thereby helping bridge the investment gap.
According to a recent World Bank report, India needs to allocate an estimated $840 billion over the next 15 years to meet its urban infrastructure requirements.
Despite Bloomberg’s attempts to obtain comments through emails and messages, NIIF and Athaang did not respond to the requests for official statements.
The National Investment and Infrastructure Fund Limited (NIIFL) serves as an investment platform for both Indian and international investors, with strong backing from the Government of India. The primary purpose of establishing this organization was to attract capital and foster the growth requirements of various sectors deemed significant for the country.
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