To boost infrastructure financing in India, Singapore-based Temasek has agreed to invest as much as USD400 million (SGD550 million) in the National Investment Infrastructure Fund (NIIF), a fund created by the Indian government to finance infrastructure in the country.
Temasek has become the latest investor in the NIIF’s Master Fund after Abu Dhabi Investment Authority (ADIA), HDFC Group, ICICI Bank Ltd, Kotak Mahindra Life Insurance and Axis Bank Ltd.
ADIA committed to invest as much as USD1 billion (SGD1.37 billion) in NIIF’s Master Fund last year. The other domestic private sector investors have together invested INR5000 million (USD69.76 million) in the fund.
Commenting on the investment made by Temasek, Sujoy Bose, managing director and chief executive at NIIF, said, “We are delighted to have Temasek as an investor in the NIIF Master Fund and as a shareholder of National Investment and Infrastructure Ltd, alongside other eminent institutional investors.”
“Temasek is one of the most renowned institutional investors globally and will add to the roster of marque investors backing NIIF,” he added.
Rohit Sipahimalani, joint head - India, Temasek, said, “We are pleased to be able to participate in India’s growth, through our investment alongside the Indian government and other institutions in the NIIF.”
“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,” he added.
Notably, Temasek’s portfolio stood at USD235 billion (SGD323 billion) on March 31, 2018 with significant exposure to Singapore and the rest of Asia.
The Indian government had set up NIIF in 2015 as an investment vehicle for funding commercially viable greenfield, brownfield and stalled infrastructure projects.
It has three operational funds — the Master Fund that invests directly in infrastructure companies, a Fund of Funds that invests in third party managed funds and a Strategic Investment Fund focused on key long-term assets.
The Indian government is investing 49 per cent and the rest of the corpus is to be raised from third-party investors such as sovereign wealth funds, insurance and pension funds, endowments.