The Asian Infrastructure Investment Bank has approved a $150 million equity commitment to a $750 million India-focused fund, called the India Infrastructure Fund, to facilitate the infrastructure development in India.
The commitment will help to attract much needed private investment capital for infrastructure projects in India. Catalyzing private capital is broadly acknowledged as a critical component to addressing the infrastructure gap in Asia. This investment aligns with the Bank’s priorities to support sustainable infrastructure, improve cross-border connectivity and mobilize private capital.
The fund aims to invest in mid-cap infrastructure companies in India, and to expand the Bank’s equity and loan deal sourcing pipelines in the private sector through its equity participation in this fund. This initiative will benefit local infrastructure development by enhancing private capital inflows from global long-term investors, such as public pension funds, endowments and insurance companies.
In addition, AIIB approved loans of $114 million and $60 million to Georgia Batumi Bypass Road Project and the Tajikistan Nurek Hydropower Rehabilitation Project Phase I, respectively.