NIIF will attract new investors to the debt marketplace

7 Jul 2022 , 09:26 AM

The first infrastructure-focused fund in India, National Investment and Infrastructure Fund (NIIF), wants to attract additional investors to its non-bank financing platform. According to a top executive, the NBFC platform, which started operations in 2016, has loans of Rs23,000 crore on its records.

According to Prakash Rao, executive director, and chief investment officer – indirect investments, NIIF, the NIIF debt platform comprises NIIF Infrastructure Finance (NBFC-IDF) and Aseem Infrastructure Finance (NBFC-IFC), and the two combined have now accrued a loan book of around 23,000 crores.

The loan book of NIIF Infrastructure Finance increased from Rs 4,000 crore to Rs 16,000 crore during the last three years. With no bad loans, it has been expanding at a CAGR of between 45 and 50 percent. No non-performing assets exist at NIIF Infrastructure Finance or Aseem, noted Rao.

The legal framework for infrastructure debt funds (IDFs) requires that only infrastructure projects having at least a year of successful commercial operations be eligible for financing.

In less than one and a half years after its establishment, Aseem Infrastructure Finance secured a foreign investor. According to Rao, “we are looking at bringing in another one or two overseas investors in the near future,” adding that the conversations were ongoing.

As a strategic investor, Sumitomo Mitsui Banking Corp. of Japan acquired a 10% share in Aseem Infrastructure Finance in February. The goal is to achieve both a balance of returns and the nation’s infrastructure financing goals as a strategic investor.