📋 Tender Overview
STATUS
Approved
MEMBER
India
SECTOR
Multi-sector
E&S CATEGORY
FI
PROJECT NUMBER
000022
FINANCING
APPROVED FUNDING
USD150 million
FINANCING TYPE
Nonsovereign
TIMELINE
CONCEPT REVIEW
February 17, 2017
APPRAISAL REVIEW/FINAL REVIEW
May 8, 2017
FINANCING APPROVAL
June 15, 2017
OBJECTIVE
The objective is to support mid-cap infrastructure projects in India by creating a mechanism to mobilize private capital from global long-term investors such as pension funds, endowments and insurance companies. Through its investment in the Fund, the Bank enhances its development impact by increasing the number of investments the Bank can transact. It also provides the Bank with an effective way to deploy capital by allowing the Bank to make investments that it would not have been able to execute on its own. Moreover, the Bank expects long-term income and capital gains not only from providing capital to the Fund, but also from participating in Fund coinvestment and co-financing opportunities.
DESCRIPTION
The Fund’s investment strategy is to invest in infrastructure platforms and infrastructure services companies with high growth potential that derive their revenues principally from India. The targeted investments cover a number of sectors, including the following examples and related sectors:
Energy and utilities (e.g. renewable energy, electric transmission and distribution networks, water and wastewater systems, smart cities, etc.).
Transportation and logistics (e.g. roads, airports, bridges, tunnels, ports, railways, waterways, intermodal systems linking various transport modes, urban transport, logistics and logistics related infrastructure, etc.).
Other sectors including telecommunications, broadband, urban PPP projects, healthcare and education.
The Fund will seek to invest in portfolio companies that support and benefit from overall growth in India’s infrastructure development and will target a market rate of return reflecting the risks of the investment, principally through long-term capital appreciation. All investments by the Fund will be guided by an assessment of government policies and prospects for private sector infrastructure investment. The Fund seeks to identify and partner with capable, trustworthy sponsors and management teams.
The Fund achieved final closing with USD187.55 million of committed capital on July 6, 2020. The Bank’s commitment to the Fund is USD37.51 million.
