The New Development Bank (NDB) has announced an investment of US$100 million in the NIIF Fund (FoF). Through NDB’s $100 million investment, NIIF FoF has now secured a commitment of $800 million.
♦ NDB has joined the Asian Infrastructure Investment Bank (AIIB), the Government of India (GoI) and the Asian Development Bank (ADB) as an investor in NIIF FoF.
♦ NDB’s investment is its first equity investment in India. This is also the first investment by the New Development Bank in the fund.
♦ NIIF Fund of Funds (FoF): FoF was established in 2018. The purpose of establishing the foundation is to provide a channel for institutional investors for local private equity fund managers in India. The institutional investors conduct large-scale operations with India as the center. So far, FOF has pledged to provide funding to four funds. The total amount of commitments exceeds Rs 27.5 billion.
♦ National Investment and Infrastructure Fund (NIIF): It is India’s first investment fund for infrastructure. It is also called a sovereign wealth fund. The fund was established by the Indian government in February 2015. The purpose of setting up the fund is to maximize the economic impact through infrastructure investment in commercially viable Greenfield and Brownfield projects.
♦ New Development Bank (NDB): It was formerly known as the BRICS Development Bank. NDB is a multilateral development bank established by the BRICS countries (Brazil, Russia, India, China and South Africa). Banks support public or private projects through loans, guarantees and equity participation.
♦ Asian Infrastructure Investment Bank (AIIB): The bank was established to improve economic and social outcomes in Asia. Currently, it has 103 members and 21 potential members worldwide. The bank opened on December 25, 2015.