US govt’s finance corp to invest $54 mn in India's infra fund
US International Development Finance
Corporation (DFC) recently announced that it will invest $54 million in equity
for India’s National Investment and Infrastructure Fund (NIIF). The new equity
is being pumped in to support development of critical infrastructure projects
in India.
DFC, a part of the US government established in 2019 through the passage of
Trump’s Better Utilization of Investments Leading to Development (BUILD) Act,
said the equity supports Covid-19 pandemic-affected development. The financing
fulfils government-owned NIIF’s final round of fundraising for
the fund.
”DFC’s investment will support the growth and development of a key partner in
the Indo-Pacific and allow DFC to facilitate investment in strategic
infrastructure projects throughout India,” DFC Chief Executive Officer Adam
Boehler said. “DFC brings its commitment to high standards in all of our
projects, and we are excited to establish this partnership with NIIF.”
“We are pleased to announce that NIIF has completed fundraising for its Master
Fund,” said NIIF Chief Executive Officer Sujoy Bose. “We are excited at all
that DFC brings to the table, including its high standards such as the Blue Dot
Network and commitment to best practices with respect to transparency and
management of environmental and social risks.”
NIIF will work to mobilize capital to support the beleaguered economic growth in
India, especially impacted by the coronavirus pandemic, and address critical
development challenges in the country.
DFC’s investment will help NIIF invest in infrastructure projects that are
important for the long term sustainable growth of the Indian economy,
supporting development and US foreign policy. Recently, DFC had announced
a $15 million equity investment to help Freshtohome Foods Ltd expand its
Bangalore, India-based e-commerce business that sells fresh fish, meat, and
vegetables in major metropolitan cities in India. DFC also financed
Rs 350 million ($4.76 million) to a local mortgage lender Aviom, which
has created employment opportunities for thousands of women in India.
The finance corporation partners with the private sector and invests across sectors including energy, healthcare, critical infrastructure, and technology, and provides financing for small businesses and women entrepreneurs with the aim to create jobs in emerging markets.
Also read: Equity infusion worth Rs 6,000 crore into NIIF on cards
