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NIIF unveils $600 mn India-Japan Fund

NIIF unveils $600 mn India-Japan Fund

  • The National Investment and Infrastructure Fund has entered into a collaboration with Japan Bank for International Cooperation (JBIC) to unveil a $600 million India-Japan Fund.

Key points

  • The fund will have JBIC and Government of India as anchor investors.
  • It will focus on investing in environmental sustainability and low carbon emission strategies
  • Objective: aims to play the role of being a ‘partner of choice’ to further enhance Japanese investments into India
  • The announcement marks NIIF’s first bilateral fund, with GoI contributing 49% of the target corpus and the remaining 51% contributed by JBIC.
  • The fund will be managed by NIIF Limited (NIIFL), and JBIC IG (a subsidiary of JBIC) will support NIIFL in promoting Japanese investments in India.
  • The setting up of the India-Japan Fund represents a key milestone in the strategic and economic partnership between the Japanese government and GoI.
  • The ₹40,000-crore NIIF was set up in December 2015 as an institution for enhancing infrastructure financing by investing in greenfield (new), brownfield (existing) and stalled projects.
  • The fund was set up as Category II Alternative Investment Fund (AIF).
  • NIIF manages three funds with distinct strategies – Master Fund, Fund of Funds and Strategic Opportunities Fund.

National Investment and Infrastructure Fund

  • NIIF is an investor-owned fund manager, anchored by the Government of India (GoI) in collaboration with leading global and domestic institutional investors.
  • The Indian government has a 49 % stake in NIIF with the rest held by marquee foreign and domestic investors.
  • NIIF was set up as an alternative investment fund (AIF) in 2015 with a planned corpus of ₹40,000 crore.
  • Headquarters: Mumbai.
  • Objective: To provide long-term capital to the country’s infrastructure sector.
  • NIIF currently manages three funds each with its distinctive investment mandate namely
    • Master fund,
    • Fund Of Funds and
    • Strategic Fund.
  • The funds are registered as Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI).

Prelims Takeaway

  • Alternative Investment Fund
  • Securities and Exchange Board of India

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