AIIB's $200 Mn Investment In NIIF Will Trigger A Multiplier Effect

The investment is being made in 2 phases:

The board of directors of the Asian Infrastructure Investment Bank (AIIB) has approved an equity investment of $100 million in India’s National Investment and Infrastructure Fund’s (NIIF) ‘Fund of Funds’, as part of phase I for its initial closing. The decision was taken at the the bank’s 3rd AGM held in Mumbai recently. AIIB is also considering a further investment of $100 million as part of phase II for the final closing.

NIIF, anchored by the government of India, is a collaborative investment platform for international and domestic investors for investing in commercially viable Indian infrastructure projects. NIIF’s Fund of Funds will anchor and/or invest in funds and some of the sectors of focus include green infrastructure, mid-income & affordable housing, infrastructure services and allied sectors. NIIF Fund of Funds recently announced its first investment, Green Growth Equity Fund, which will invest in renewable energy, clean transportation, water, sanitation and waste management. AIIB will provide expertise to enhance NIIF’s environmental and social risk management capabilities.

“Our investment in the NIIF reflects AIIB’s commitment to support the Government of India in its efforts to promote investment in infrastructure and to mobilize private capital for development,” said AIIB vice president and chief investment officer D.J. Pandian.

The NIIF will provide access to a diversified range of sub-funds and trigger a multiplier effect in attracting capital, said AIIB director general of Investment Operations Dong-Ik Lee. “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 companies - within and outside India - to make investments in the country’s infrastructure sector,” he added.