SOF has made two commitments, an investment in NIIF Infrastructure Finance Limited (NIIF IFL) and an investment in Aseem Infrastructure Finance Limited (AIFL), both investments combining well to form the NIIF Infrastructure Debt Financing Platform. NIIF Infrastructure Debt Financing Platform will straddle across the entire infrastructure debt financing spectrum through these two separate but complimentary vehicles.
NIIF Infrastructure Finance Limited (NIIF IFL):
NIIF IFL is the first investment of NIIF’s SOF and NIIF SOF is the controlling shareholder of NIIF IFL.
NIIF IFL is a Non-Banking Finance Company registered with the Reserve Bank of India as an Infrastructure Debt Fund (NBFC-IDF). NIIF IFL provides long-term debt to operating infrastructure assets with satisfactory commercial operations for more than one year, by refinancing loans originally taken for project development, thereby enabling original project financiers the ability to recycle their capital following the commencement of operations.
This acquisition allows NIIF to have a meaningful role in the private infrastructure debt space where there is a growing need for long-term financing given India’s infrastructure ambitions.
Aseem Infrastructure Finance Limited (AIFL):
AIFL is a Non-Banking Finance Company registered with the Reserve Bank of India as an Infrastructure Finance Company (NBFC-IFC). AIFL has the flexibility to lend across infrastructure assets, which are in different phases of implementation.
NIIF SOF has incubated AIFL and holds 100% equity shareholding of AIFL. AIFL is also the sponsor of NIIF IFL.
AIFL and NIIF IFL will complement each other with synergies in terms of sector expertise and investing capabilities – capitalising on advantages without similar constraints.