AIIB to pump $200m into Indian infra fund

•  The Asian Infrastructure Investment Bank (AIIB) will pump $200 million into the National Investment & Infrastructure Fund (NIIF).
• The $200-million investment is in two phases. AIIB will invest $100 million now and another $100 million in the future.

About NIIF (National Investment and Infrastructure Fund):

• Infrastructure investments require long term patient capital, the Government announced the setting up of National Investment and Infrastructure Fund (NIIF), as a quasi-sovereign wealth fund.
• The corpus of the Fund is proposed to be of the order of Rs.40,000 cr (US$6 billion) wherein the Government of India would invest 49%, circa Rs.20,000 cr (US$3 billion).
• NIIF is expected play the role of a catalyst for supporting investments in infrastructure with the objective of maximizing economic impact through investments in commercially viable projects, both greenfield and brownfield, including stalled projects.
• NIIF shall also consider other nationally important projects, if found commercially viable.
• NIIF will raise third party capital for the remaining Rs.20,000 crore (US$ 3 billion), from long term international investors, such as a Sovereign Wealth Funds, Insurance and Pension Funds, endowments etc.
• National Investment and Infrastructure Fund (NIIF) is formed as a trust (set up under the provisions of Indian Trusts Act 1882) created by the Government of India.
• NIIF is registered with Securities and Exchange Board of India ("SEBI") as a Category II Alternate Investment Fund ("AIF") under the SEBI (Alternative Investments Funds) Regulations, 2012 ("AIF Regulations").
• The fund has been set up as a fund of funds structure with an aim to generate risk adjusted returns for its investors alongside promoting infrastructure development and technology in the country by means of investments.
• National Investment and Infrastructure Fund Trustee Ltd. ("NIIF Trustee Ltd."), a 100% Government of India owned company is the trustee to NIIF.
• National Investment and Infrastructure Fund Ltd. ("NIIF Ltd.") is the investment manager to NIIF, in which 51% stake shall be offered to investors other than the Government of India, and balance 49% stake shall remain with Government of India. NIIF Ltd would be managed by an independent team of professionals sourced from the market with relevant experience.

By: Vishal