Infra Funding Gets A Boost – ADB Pledges $100 Million To India’s Sovereign Wealth
The National Investment and Infrastructure Fund Ltd (NIIF), received a commitment of about $100 million from the Asian Development Bank (ADB) into the NIIF Fund of Funds (FoF).
Total Investment pledges from the Government and Asian Infrastructure Investment Bank (AIIB) and together with ADB’s investment into the NIIF platform, the total commitments towards the FoF stand at $700 million.
The Fund of Funds is mandated to invest as an anchor investor in third party fund managers. It can also selectively form joint ventures with fund managers.
According to Sujoy Bose, CEO NIIF this commitment of ADB during adverse macro economic condtions shows that India growth and potential story is intact.
Envisioned in the Union budget 2015, NIIF was launched as an alternative investment fund in December 2016 with a target corpus of ₹40,000 crore.
Its investments are diversified across its three funds— Master Fund, Fund Of Funds and Strategic Fund, across which it manages $4 billion of capital commitments.
NIIF is a quasi-sovereign wealth fund, in which the government of India holds 49% equity with the rest held by foreign and domestic investors, is mandated to invest in infrastructure and related sectors that could help fuel economic growth in the country.