NIIF Current Affairs

First Investment Agreement signed between NIIF and Abu Dhabi Investment Authority

India’s National Investment and Infrastructure Fund (NIIF) of India on has signed an investment agreement worth $1 billion with Abu Dhabi Investment Authority (ADIA). With this, ADIA became first institutional investor in NIIF’s Master Fund and shareholder in NIIF’s investment management Company. NIIF is claimed to be India’s first sovereign wealth fund.

Background

The agreement was signed in pursuant to Memorandum of Understanding (MoU) between Department of Economic Affairs (DEA), Finance Ministry and Government of United Arab Emirates (UAE) to mobilise long term investment into NIIF.

National Investment and Infrastructure Fund (NIIF)

The Union Government has set up NIIF in 2015 with aim to attract investments from both domestic and international sources for infrastructure development in commercially viable projects both Greenfield and Brownfield, including stalled projects. It was envisaged to be Category II Alternative Investment Funds (AIFs) under SEBI Regulations. It will also serve as an umbrella fund with several funds underneath it.

It has proposed corpus of Rs. 40,000 crores (around $6 Billion).  Government’s contribution to NIIF is 49% of total commitment at any given point of time. NIIF has been mandated to solicit equity participation from strategic anchor partners, like overseas sovereign, quasi-sovereign, multilateral and bilateral investors.

Two companies viz. NIIFTL, trustee of fund and NIIFL, investment management company of NIIF were incorporated in 2015. Besides, Governing Council also has been set up under chairmanship of Union Finance Minister to act as an advisory council to NIIF.

Few investors of NIIF

NIIF has singed MoUs with Government of UAE, RUSNANO, QIA, RDIF and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN). In addition, DEA has signed terms for cooperation on NIIF with UK Treasury and US Treasury. Besides, India-UK Green Growth Equity Fund (GGEF) also has been announced in April 2017.

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Sujoy Bose appointed as first CEO of NIIF

The Union Government has appointed Sujoy Bose as the first Chief Executive Officer (CEO) of National Investment and Infrastructure Fund (NIIF).

His selection for the CEO of NIIF was recommended by a search-cum-selection committee under the chairmanship of Economic Affairs Secretary Shaktikanta Das.

About Sujoy Bose

  • Prior to this appointment, he was the Director and Global Co-Head of Infrastructure and Natural Resources at International Finance Corporation (IFC), the private sector lending arm of the World Bank.
  • He has rich experience at international level in the infrastructure sector, including experience in raising funds from international investors.
  • He had worked at IFC for over 23 years where he had served as chief investment officer (CIO) and head of IFC African Latin American and Caribbean Fund at IFC Asset Management Company.

About National Investment and Infrastructure Fund (NIIF)

  • NIIF is India’s quasi sovereign wealth fund (SWF) formed to attract investment from both domestic and international sources for infrastructure development in the counry.
  • It has been incorporated as a company under the Companies Act, 2013 and has been duly authorized to act as investment manager of the fund.
  • The objective of NIIF is to maximize economic growth of the country mainly through infrastructure development in commercially viable projects (both greenfield and brownfield), including stalled projects.
  • For the investment purpose, NIIF will solicit equity participation from strategic anchor partners.
  • An initial budgetary allocation of 4000 crore rupees has also been made in 2016-17 Union Budget. However, Government will make further allocation when necessary.

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