HDFC and Kotak Life updates commitments


Ontario Teachers; Pension Plan
Ontario Teachers’ Pension Plan

The National Investment and Infrastructure Fund (NIIF) has secured a US$1 billion each from Australian Super and Ontario Teachers’ Pension Plan, which reflects a strong interest from foreign investors in India’s development.

NIIF Master Fund has signed investment agreements for its third closing with two of the leading global pension funds on 7 august 2019, reported Nishith Desai Associates.

The massive US$2 billion investment includes co-investments, according to the consultancy which has helped NIIF and Ministry of Finance set up the NIIF Master Fund and acted as the fund counsel and the transaction counsel to NIIF and advised on legal, structuring and regulatory aspects of the transaction including the negotiations and deal documentation for all the funding rounds.

Further, two of the existing domestic financial institutional investors, HDFC Life and Kotak Life, have also signed updated documents to increase their existing commitments to the NIIF Master Fund, respectively.

The total assets under management of NIIF Master Fund after the third closing would be the largest for an infrastructure fund in India of about US$4 billion, including co-investments, according to Nishith Desai report on 8 August 2019.

The Budget 2015-16 of 28 February 2015, the Finance Minister had announced the setting up of a National Investment and Infrastructure Fund with the Government’s contribution to the Fund to be 49% of the total commitments of the Fund.

NIIF Master Fund is registered with Securities and Exchange Board of India (SEBI) as a Category II Alternate Investment Fund (AIF) under the SEBI (Alternative Investments Funds) Regulations, 2012, and will primarily focus on the infrastructure sector.

The Fund could also consider investments into other commercially viable projects within the broader investment strategy of the Fund, said Nishith Desai Associates.


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