ADIA commits $1b to India’s state-backed infra fund
Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund based in the United Arab Emirates, has committed $1 billion to the Indian government’s National Investment and Infrastructure Fund (NIIF).
"The NIIF is set to play an important role in facilitating the flow of foreign capital into India's infrastructure sector,” Khadem Alremeithi, executive director of the real estate and infrastructure at ADIA, said in a statement. “As a long-standing investor in India and in infrastructure globally, ADIA welcomes the opportunity to be the first to partner with NIIF in a platform that is sure to be of interest to other long-term institutional investors."
NIIF was set up in 2015 with a view to raising about INR400 billion ($6.2 billion) for infrastructure projects, including a INR200 billion contribution from the Indian government. The fund is envisioned as a catalyst for economic activity in both greenfield and brownfield projects, including previously initiated but stalled operations.
ADIA is backing the initiative’s Master Fund, which will invest mature businesses with long-term track records in industries including energy and transportation. NIIF also includes a fund-of-funds program, which will partner with Indian fund managers across a range of product and market targeting strategies.
Indian infrastructure has attracted increased interested in recent years from foreign LPs and sovereign wealth funds, including Kuwait Investment Authority, GIC Private and at least two Canadian pension plans. The momentum is expected to support about $90 billion of investment in the renewable energy space by 2022. Meanwhile, the government has allocated about $100 million to expand rail networks and $25 billion for a hybrid annuity program that will drive private investment in highways.
Recent activity by ADIA in the sector includes participation alongside GIC in a $155 million investment in solar, wind and hydroelectric project developer Greenko Energy. Last year ADIA announced plans to open an office in Hong Kong to identify new investment opportunities in China and other Asian markets, including India.
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