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AIIB to invest $100 mn for India's development projects

IANS  |  Mumbai 

The Beijing-based (AIIB) announced on Monday an equity investment of $100 million in India's (NIIF) to help various development projects in this country.

The amount will be for the Phase I of NIIF's Fund of Fund (Eds: Correct) initial closing and the is considering another $100 million in Phase II for the final closing, bringing the bank's total commitment to $200 million, an official announcement said here.

The NIIF is a collaborative investment platform for international and domestic investors keen on investing in commercially viable Indian infrastructure projects.

The NIIF's Fund of Fund will anchor or invest in funds managed by fund managers with good track records in various infrastructure and associated sectors in

Some of the focus sectors include: Green Infrastructure, Mid-Income and Affordable Housing, and Allied Sectors, the said.

The NIIF recently announced its first investment - - which will invest in renewable energies, clean transportation, water, sanitation and

The will provide its expertise to enhance NIIF's environmental and social risk management capabilities to improve and monitor ecological and social performance across the portfolio investments.

"Our investment in the NIIF reflects AIIB's commitment to support the in its efforts to promote investment in infrastructure and to mobilize private capital for development," said AIIB

The AIIB Operations, Dong-Ik Lee, said the NIIF will provide access to a diversified range of sub-funds and trigger a multiplier effect in attracting capital.

"With AIIB's investment in the NIIF, we will help pool commitments from long-term investors such as multilateral institutions, sovereign wealth funds, pension funds and insurance companiesa"within and outside Indiaa"to make investments in the country's infrastructure sector," Lee said.

With a total project portfolio of $4.4 billion, is the largest borrower of AIIB's lending since the started its operations two-and-a-half-years ago.

With 86 members, including from Europe, North America, East Afric and Latin America, nearly 75 per cent of the AIIB capital is from

The will also consider investing in projects outside provided they benefit and has invested in a solar power project in

Unlike most other set up by advanced economies, AIIB is the first such where principal contributors are the borrowing members themselves.

The 3rd AIIB annual meeting opened in on Monday with a focus on infrastructure, coupled with the theme of innovation and collaboration.

--IANS

qn/vm

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 25 2018. 15:54 IST
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