Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,856.80-80.7
Stock Analysis, IPO, Mutual Funds, Bonds & More

DP World and India's NIIF to invest up to $3 billion in transport, logistics

The money will target acquiring assets and developing projects in sea and river ports, freight corridors, special economic zones etc.

ET Bureau|
Updated: Jan 23, 2018, 08.00 AM IST
0Comments
BCCL
1
DP World, which operates several ports in India, said in January last year it was partnering with Canadian pension fund manager
NEW DELHI: National Investment and Infrastructure Fund (NIIF) on Monday announced a $3-billion platform in partnership with Dubai-based ports operator DP World to invest in ports, terminals and logistics. This is the first investment by NIIF, a sort of sovereign fund set up by the government.

“The platform will invest in opportunities in the ports sector, and beyond sea ports into areas such as river ports and transportation, freight corridors, portled special economic zones, inland container terminals, and logistics infrastructure including cold storage,” the finance ministry said in a statement.

DP World in a statement said the platform will invest up to $3 billion, or about Rs 19,170 crore, of equity to acquire assets and develop projects in ports, terminals, transportation and logistics businesses in India.

In May last year, DP World had announced $1 billion, or about Rs 6,390 crore, investment in India to tap into opportunities in infrastructure space. This was in addition to more than $1 billion investment it already made in the country.

NIIF, in which the government has 49% stake, has a proposed corpus of Rs 40,000 crore.

9


“Following its first close in October 2017 on the fund-raising side, and now with its first investment, NIIF is making visible progress,’’ department of economic affairs secretary Subhash Chandra Garg said.

A subsidiary of the Abu Dhabi Investment Authority (ADIA), one of the largest sovereign wealth fund in the world, and four domestic institutional investors (DIIs) — HDFC Group, ICICI Bank, Kotak Mahindra Life and Axis Bank — invested in the NIIF Master Fund on October 16, 2017.

NIIF has a mandate to solicit equity participation from strategic anchor partners including overseas sovereign, quasi-sovereign, multilateral and bilateral investors.

It will establish three alternative investment funds (AIFs) under Sebi Regulations. An India-UK Green Growth Equity Fund (GGEF) is also being set up under the fund of funds vertical of NIIF, and will have anchor commitments of £120 million, or about Rs 1,068 crore, each from the governments of India (through NIIF) and the UK.

NIIF CEO Sujoy Bose said its joint investment platform with DP World will aim to reduce the cost of moving cargo between port and origin/destination.

Also Read

Sical in talks with DP World, others to sell its port assets

DP World acquires 76% stake in KRIL

India, UAE trade to expand on initiatives like e2e: DP World

Continental Warehousing Corporation acquired by DP world and NIIF

DP World, NIIF win bid to build Free Trade Warehousing Zone at JNPT Mumbai for USD 78 mn

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service