Temasek to invest $400 mn in NIIF

The National Investment and Infrastructure Fund (NIIF) on Thursday said Singapore-based Temasek has committed an investment of up to $400 million, or Rs 2,750 crore, in its 'Master Fund'.

With this investment, global investment firm Temasek will become the seventh investor in NIIF's Master Fund. The existing investors include the government, Abu Dhabi Investment Authority (ADIA), HDFC group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank.

"We are delighted to have Temasek as an investor in the NIIF Master Fund and as a shareholder of National Investment and Infrastructure, along with other institutional investors," NIIF's managing director and chief executive officer, Sujoy Bose, told reporters here on Thursday. NIIF is set up by the government as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects. The government's holding in NIIF is 49 per cent and the balance is being held by other global and domestic investors. It manages two funds Master Fund and Fund of Funds, and is in the process of launching third fund – Strategic Investment Fund.

Bose said NIIF plans to raise Rs 40,000 crore from these three funds, which includes Rs 20,000 from the government.

He said the structure of Strategic Investment Fund, a long-term fund which will focus on greenfield projects, is still in the design phase. When asked if NIIF would invest in distressed assets, he said the decision will depend on the commercial opportunities available.

To a query on whether NIIF would be open to be part of National Asset Management Company, under Project Sashakt, Bose said, "Right now we are not looking at any specific distress fund, but under Fund of Funds, nothing is stopping us from doing a distress fund. We might look at it."