Temasek to invest ~27 bn in NIIF

Temasek Holdings, a global investment firm based in Singapore, has agreed to invest up to $400 million (or ~27.5 billion) in the National Investment and Infrastructure Fund’s (NIIF) Master Fund, said Chief Executive Officer and Managing Director Sujoy Bose at a media round table on Thursday.

Temasek is the seventh investor in NIIF’s Master Fund, after the Indian government, Abu Dhabi Investment Authority, HDFC Group, Kotak Mahindra Life Insurance, Axis Bank and ICICI Bank.

The NIIF is essentially a fund manager registered with the Sebi as an alternative investment fund (AIF). And unlike banks and other financial institutions that provide loans for infrastructure projects, the NIIF is a pure equity investor in companies and projects. The company hopes to raise ~400 billion across its three funds in the near term — Master Fund, Fund of Funds and Strategic Investment Fund.

The government’s shareholding in the Master Fund stands at 49 per cent, while other investors hold 51 per cent. In 2015, the Centre allocated ~200 billion towards the NIIF in its Budget announcement and the NIIF raised a matching sum from domestic as well as international investors. ADIA’s investment in the Master Fund stands at ~68 billion, followed by Temasek with ~27.5 billion and domestic financial institutions who have contributed a total of ~5 billion in total, Bose said.