Abu Dhabi Investment Authority to invest $1 billion in the NIIF

Abu Dhabi Investment Authority (ADIA) will soon be investing $1 billion in the National Investment and Infrastructure Fund (NIIF), indicate reports, thus aiding India in raising equity funds for the development of its infrastructure. NIIF Master Fund and a wholly-owned subsidiary of ADIA signed the agreement for this deal, making ADIA the first institutional investor in the master fund. In addition to ADIA and the Indian Goverment, it is known that six domestic investors including HDFC Asset Management, HDFC Standard Life Insurance, Housing Development Finance, ICICI Bank, Axis Bank, Kotak Mahindra Old Mutual Life Insurance will also be investing in the master fund. The government’s stake in NIIF is at 49 per cent allowing for private sector operational flexibility, which will evince interest of not just bilateral and multilateral investors but also sovereign wealth funds. This agreement between ADIA and NIIF is expected to give way for the creation of major economic impact by allowing investment in viable infrastructure projects.