ADB to invest $100 Million in Indian Infrastructure
The ADB will be investing in NIIF’s ‘Fund of Funds’, which will ensure that the actual money invested is more than $100 Million.
The Asian Development Bank (ADB) announced on March 30, 2020, that it will be making an investment worth $100 Million in Indian Infrastructure through government promoted National Investment and Infrastructure Fund (NIIF).
The ADB will be investing in NIIF’s ‘Fund of Funds’, which will ensure that the actual money invested is more than $100 Million. NIIF’s Managing Director and Chief Executive Sujoy Bose have welcomed this decision.
The investment announcement by ADB has come at a time when the Indian Economy is taking a major hit due to the COVID-19 pandemic. The MD and Chief Executive of NIIF, Sujoy Bose mentioned that Indian private funds have been funded by ADB for over two decades and the latest decision will help equity fund managers who are struggling to raise money from overseas.
Significance of ADB’s $100 Million Investment
- Investment in NIIF by ADB will help in the contribution and long term financing for the private sector companies
- This will give assurance for quality jobs, economic growth, and development of infrastructure
- The announced investment has come at the challenging time when the economy is taking a hit due to Coronavirus pandemic
- The investment by ADB will help the private fund managers and entrepreneurs who require capital to grow their companies
About Asian Development Bank (ADB)
Asian Development Bank (ADB) established on December 19, 1966, is a regional development bank. It is headquartered in Manila, Philippines but maintains 31 field offices all around the world. The purpose of ADB is to promote economic and social development in Asia.
Along with the latest announcement in Indian Infrastructure via NIIF, the bank has also made commitments to three other funds that aggregate over Rs.2600 Crore or $ 350 million. These funds are investments in three diverse areas that include middle income and affordable housing, green energy and climate and entrepreneur-driven mid-market growth companies that operate across diversified sectors.