Earlier in the day (Wednesday, October 31st), The National Investment and Infrastructure Fund (NIIF) made an announcement stating that it is officially set to acquire IDFC Infrastructure(NSE 2.43 %) Finance (IDFC-IFL), an infrastructure debt fund.
As per reports, this acquisition would be the first investment made from NIIF’s strategic fund.
In an official statement, NIIF also mentioned that this acquisition is subject to customary closing conditions and approval from RBI.
The primary work of IDFC is to act as an investment vehicle for driving more investments into India’s infrastructure sector.
With a pre-existing loan book of Rs 4500 crore, IDFC-IFL is a venture that lends capital to operating infrastructure projects, and also provides assistance to original project financiers to recycle their capital once their operations have begun.
Speaking about the acquisition, in a statement, NIIF Managing Director Sujoy Bose said, “This acquisition will make is possible for NIIF to play a meaningful role in the private debt space in Indian Infrastructure, where we have noticed a growing need especially considering India’s infrastructure ambition, an emerging gap as traditional infrastructure lenders consolidate and the potential for attractive returns.”