The National Investment and Infrastructure Fund (NIIF) of India today said it has signed an investment agreement worth USD 1 billion with Abu Dhabi Investment Authority (ADIA).
The government has set up NIIF with the aim to attract investments from both domestic and international sources for infrastructure development in commercially viable projects.
"As part of the comprehensive partnership agreement, ADIA will become the first institutional investor in NIIF's Master Fund and a shareholder in National Investment and Infrastructure Limited, the NIIF's investment management company," the NIIF said in a statement.
Fund's CEO Sujoy Bose said the agreement marks the culmination of an extensive process of collaboration with ADIA to develop an investment structure that is attractive to international investors while remaining closely aligned with the NIIF's objectives.
"We are proud to have ADIA as our founding partner, and grateful for its support and contributions to date, and we now look forward to announcing further agreements with other investors," he said.
Khadem AlRemeithi, Executive Director of the Real Estate and Infrastructure Department at ADIA, said the fund is set to play an important role in facilitating the flow of foreign capital into India s infrastructure sector.
The corpus of the NIIF is proposed to be Rs 40,000 crore (USD 6 billion) wherein the government would invest 49 per cent.
It will raise third party capital for the remaining Rs 20,000 crore (USD 3 billion), from long term international investors, such as a sovereign wealth funds, insurance and pension funds, and endowments.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)