India's NIIF Raises $244 Million for an Infrastructure Investment Trust
Based on reports from persons familiar with the subject, India's National Investment & Infrastructure Fund is in talks to raise at least 20 billion rupees ($244 million) for an infrastructure investment trust.
According to one of the persons who declined to be identified because the information is private, the vehicle would comprise some assets from Athaang Infrastructure, which operates toll roads. According to another source, the investment will be made through a private placement and the fund raising will take place by September.
The NIIF is India's first major attempt to establish a capital-raising mechanism on its own soil to address a shortfall in infrastructure investment. Abu Dhabi Investment Authority and Singapore's Temasek Holdings Pte are among its investors, according to its website.
Infrastructure investment trusts, or InvITs for short, are similar to mutual funds in that they allow the pooling of assets for financing projects and can assist make up for investment shortfalls.
According to a World Bank assessment released last year, the government will need to invest $840 billion on urban infrastructure over the next 15 years.