Infrastructure Debt-Financing platform
With significant investments in Infrastructure sector in coming years in India, there is a need for specialized infrastructure financing institutions providing debt finance to the sector at scale. We aim to build an AUM of over USD 10 billion over the next 5-6 years across greenfield, brownfield and refinancing of infrastructure debt through this investment.
Strategy and approach
SOF is building a scalable integrated financial services platform to fill the gap via two complementary entities – NIIF Infrastructure Finance Limited (NIIF IFL) and Aseem Infrastructure Finance Limited (AIFL), both being non-banking finance companies. The two together constitute the NIIF Infrastructure Debt Financing Platform. SOF has invested equity at scale across these two companies to enable them to be one of the largest players in the Infrastructure Debt Financing space with robust governance processes, strong management teams and focus on Environment, Social and Governance (ESG) norms as part of their lending processes.
• NIIF Infrastructure Finance Limited (NIIF IFL):
NIIF IFL provides takeout financing to operating infrastructure assets with satisfactory commercial operations for more than one year, by refinancing loans originally taken for project development. This enables the original project financiers with the ability to recycle their capital.
SOF is the controlling shareholder in NIIF IFL which is now a leading NBFC-IDF (Infrastructure Debt fund) in the market. NIIF IFL is led by Sadashiv Rao, who has over 3 decades of experience in infrastructure debt finance.
To read more, please see: https://www.niififl.in/
• Aseem Infrastructure Finance Limited (AIFL):
SOF incubated AIFL in 2020 to complement NIIF IFL and create an Infrastructure financing company that can lend across the project life cycle and also act as the sponsor of NIIF IFL.
SOF, which is the majority shareholder of AIFL, has since then built out a strong management team at AIFL led by Virender Pankaj, an infrastructure debt industry veteran and has set in place strong governance and processes to enable it to be a large player in the sector.
To read more, please see: https://aseeminfra.in/
SOF has invested in Manipal Hospitals with the objective of providing capital at scale which is a crucial requirement for the growth of any entity in this sector. This has resulted in SOF’s investment in Manipal Hospital being one of the largest PE investment in the country by a domestic fund.
Strategy and approach
Broader outreach of quality healthcare services across the country continues to be a critical requirement in India. Manipal Hospitals is one of the leading hospital chains in the country, focused on tertiary and quaternary care. It is promoted by Dr Ranjan Pai, and the management team is led by Dilip Jose, a healthcare industry veteran. It has built a strong foundation over decades in providing quality medical services and is well placed to now expand its services on a pan India basis.
SOF’s investment in Manipal Hospitals will enable the company to consolidate with another leading chain of hospitals, thus enabling them to provide quality healthcare services on a pan India basis. Post consolidation, Manipal Hospitals will have over 7,000 beds across 22 hospitals in 12 key Tier I/II markets in India– with a potential to nearly double revenues in the next 5 years. It will provide opportunities for the company to tap into large markets, expand related businesses such as pharmacy and diagnostics and also explore opportunities in the PPP segment.