Temasek commits $400m to India's NIIF
Temasek Holdings has agreed to invest up to $400 million in India’s National Investment Infrastructure Fund (NIIF).
The investment will be made into NIIF’s master fund, bringing the vehicle’s total capital raised to about $2.5 billion according to AVCJ Research. The government-owned entity, which focuses on transportation, energy and urban infrastructure, separately manages a fund-of-funds that aims to raise about $6.2 billion.
NIIF launched in 2015 with a target of about $2 billion and is now said to rank among the largest infrastructure fund in India. It has confirmed that its fundraising process remains ongoing. “Temasek is one of the most renowned institutional investors globally and will add to the roster of marquee investors backing NIIF,” Sujoy Bose, CEO at NIIF, said in a statement.
Existing investors in the master fund include Abu Dhabi Investment Authority (ADIA), HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance, and Axis Bank. Asian Infrastructure Investment Bank (AIIB) indicated earlier this year that it could invest up to $200 million in NIIF. AVCJ understands that an investment of $100 million from AIIB has been approved and is currently being finalized.
NIIF invests across greenfield and operating projects and provides anchor funding to third-party fund managers in its core segments. The firm claims that its government contacts allow it to make uniquely informed decisions in public-private partnerships. Private sector participation in Indian infrastructure has declined in recent years but is still seen as necessary to fill project funding gaps.
Recent activity by NIIF includes the acquisition of a controlling stake in logistics company Continental Warehousing in a joint deal with Dubai-based port operator DP World. Continental Warehousing has received backing from Warburg Pincus and Abraaj Capital and previously planned to go public in India via a $63 million IPO.
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