UTI Asset Management Company Ltd. (UTI AMC) announces setting up of India Infrastructure Development Fund (IIDF), an infrastructure focused, private equity fund. The fund will have a corpus of USD 500 million. The fund is being set up in association with two off-shore partners’ namely HSH Nordbank, (HSH) Germany and Noor Financial Investment Company, Kuwait.
HSH Nordbank is organized under the laws of Germany in the form of a German stock corporation and has twin headquarters in the cities of Hamburg and Kiel. The major shareholders of HSH Nordbank AG include the State of Schleswig-Holstein and the Free and Hanseatic City of Hamburg. HSH Nordbank is a leading financier in Transportation sector especially in shipping, aviation and other transport related infrastructure projects. It is also the largest financier of Ships in the world. HSH has global business interests and in India, it has participated in debt financing of Delhi Airport modernization.
Noor is the financial arm of NIG Group, which is one of the leading conglomerates in Middle East having diversified business interests both in Kuwait and in other international locations. Noor is engaged in investment activities and financial services primarily in Kuwait, the Middle East, Asia, and other emerging markets. Noor has wide experience in managing alternate assets in the infrastructure space, both in Kuwait and in other International markets. Noor is also shareholders in a number of leading companies in Kuwait including Kuwait Finance House, the 2nd largest Islamic Bank in the world.
Commenting on the initiative, Mr. U K Sinha, Chairman and Managing Director, UTI AMC said, “Infrastructure sector is a focus area for Government of India and it needs huge investments over the next 4 – 5 years. A significant number of PPP projects across various infrastructure sectors are being offered to the private developers. Recognizing this potential, UTI AMC has decided to set up this fund mainly with a view to channelise funds from offshore investors”.
For managing the fund, UTI AMC has created a dedicated team with combined experience of over 75 years. The fund will invest in unlisted companies engaged in infrastructure sectors like roads, ports, power, logistics, airports, energy and other core infrastructure sectors in India.
The fund has already made an investment in a City Gas Distribution project.
About UTI AMC
UTI AMC is the Investment Manager of UTI Mutual Fund, a SEBI registered mutual fund whose Sponsors are State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India. UTI Mutual Fund has assets under management (average) of Rs.67978.18 crore and investor accounts of over 9.70 million under its 78 domestic schemes (as of June 30, 2009).
A day after the United Progressive Alliance (UPA) government allowed up to 49 per cent foreign direct investment (FDI) in the insurance sector and ...