NIIF inks $400 mn agreement with Singapore's Temasek

MUMBAI|NEW DELHI: Singapore government’s Temasek Holdings has agreed to invest $400 million in the National Infrastructure Investment Fund (NIIF) in another bet on India’s infrastructure asset management space.

NIIF, touted as India’s first sovereign investment vehicle anchored by the government, already has investors such as Abu Dhabi Investment Authority along with several large domestic financial institutions.

With the entry of Temasek, NIIF’s Master Fund is now one of the largest infrastructure funds in India, after IDFC Alternatives and ICICI Infrastructure Fund. NIIF manages close to $3.4 billion across three investment vehicles.

NIIF intends to invest in core infrastructure sectors in India with a focus on transportation, energy and urban infrastructure, its managing director Sujoy Bose said.

“This completes second close of NIIF,” department of economic affairs secretary Subhash Chandra Garg said on Twitter. “NIIF is fast evolving into a major investment vehicle for building infrastructure assets.”

Set up in 2015, NIIF has three operational funds — the Master Fund that invests directly in infrastructure companies, a Fund of Funds that invests in thirdparty managed funds and a Strategic Investment Fund focused on key long-term assets.

As part of this agreement, Temasek will join Government of India, Abu Dhabi Investment Authority (ADIA), HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank as an investor in the Master Fund and as a shareholder in National Investment and Infrastructure Limited, NIIF’s investment management company.

“The fund reflects the government’s intent to channel capital into funding infrastructure assets and platforms, such as those in the transport, energy and urban infrastructure space, that would further support the development of sectors required for India’s continued growth,” said Rohit Sipahimalani, joint head-India at Temasek.

Temasek, which manages $235 billion globally, has been one of the key investors in India over the last two decades. Some of its infrastructure bets include Adani Ports, GMR Infrastructure and Schneider Electric India.