The National Investment and Infrastructure Fund (NIIF) of India and Abu Dhabi Investment Authority (ADIA) on Monday signed an investment agreement worth $1 billion, the finance ministry said. The Government has set up NIIF with the aim to attract investments from both domestic and international sources for infrastructure development in commercially viable projects.
As part of the agreement, ADIA will become the first institutional investor in NIIF's Master Fund and a shareholder in the NIIF's investment management company, the statement said. Earlier a Memorandum of Understanding (MoU) was signed between the Department of Economic Affairs and the Government of United Arab Emirates (UAE) to mobilise long term investment into NIIF. “The first investment agreement between NIIF Master Fund and a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) has been signed on Monday,” the ministry said, adding the investment from ADIA Group would be $1 billion.
Six domestic Institutional Investors (DIIs) -- HDFC Standard life Insurance Company limited, HDFC Asset Management Company limited, Housing Development Finance Corporation limited, ICICI Bank limited, Kotak Mahindra Old Mutual life Insurance limited, Axis Bank limited -- will also be joining the NIIF Master Fund along with ADIA apart from Government of India.
Commenting on the development, Economic Affairs Secretary Subhash Chandra Garg said: “This is a significant milestone in operationalisation of NIIF. This agreement paves the way for creating significant economic impact through investment in commercially viable infrastructure development projects.”
Fund’s CEO Sujoy Bose said the agreement marks the culmination of an extensive process of collaboration with ADIA to develop an investment structure that is attractive to international investors while remaining closely aligned with the NIIF's objectives.