Global operator of marine and inland terminals DP World on Monday joined hands with National Investment and Infrastructure Fund to create a platform for investing up to $3 billion in ports and logistics.
This is the first ever investment by National Investment and Infrastructure Fund (NIIF).
“NIIF and DP World announce the creation of an investment platform to invest in ports, terminals, transportation and logistics businesses in India. The platform will invest up to $3 billion of equity to acquire assets and develop projects in the sector,” the port operator said in a statement.
Hailing the move, the Finance Ministry said the government is pleased to take note that the NIIF has made its first investment on Monday. It said NIIF has partnered with DP World to create an investment platform for ports, terminals, transportation and logistics businesses in India, and the platform will invest in opportunities in the ports sector, and beyond sea ports into areas such as river ports and transportation, freight corridors, port-led special economic zones, inland container terminals, and logistics infrastructure.
The first close of the NIIF Master Fund took place on October 16, 2017 with contributions from a subsidiary of Abu Dhabi Investment Authority (ADIA) and four Domestic Institutional Investors (DIIs) — HDFC Group, ICICI Bank, Kotak Mahindra Life and Axis Bank.
An India-UK Green Growth Equity Fund (GGEF) is also being set up under the fund of funds vertical of NIIF, and will have anchor commitments of GBP 120 million each from Government of India (through NIIF) and Government of UK.
SC Garg, Secretary, Department of Economic Affairs (DEA), Ministry of Finance said, “NIIF, set-up to function as a major platform in India for attracting foreign investments, has made good progress. We are pleased to learn of NIIF’s first investment to create an investment platform in the ports and logistics sector. Following its First Close in October 2017 on the fund-raising side, and now with its first investment, NIIF is making visible progress”.