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NEW DELHI: The National Investment and Infrastructure Fund (NIIF) on Wednesday said it will pick up an equity stake in GMR Goa International Airport Ltd. (GGIAL), which runs the New Goa Airport, by investing ₹631 crore in the form of compulsory convertible debenture (CCD).
GGIAL is promoted by GMR Airports Ltd. (GAL), which is a partnership between India’s GMR group and French government-backed Groupe ADP. It has developed airports in over nine countries and currently operates five airports.
The deal is subject to customary completion conditions and necessary approvals. This investment will be NIIF’s first investment in an airport asset in the country and its first direct investment in Goa.
The latest partnership between NIIF and GAL will also see the government-backed fund acquire stake in two other airport projects, including international airport at Bhogapuram, Andhra Pradesh.
GGIAL, which is a special purpose vehicle, was awarded the project to develop and operate a second airport in Goa in 2016 on a design-build-finance-operate-and-transfer (DBFOT) basis.
In the first phase, Mopa International Airport shall have a capacity of handling up to 44 lakh passengers per annum, with an ultimate capacity of up to 4 crore passengers per annum, a press release said.
“NIIFL’s Master Fund is India’s largest infrastructure fund and has built a robust and well-diversified portfolio across ports and logistics, renewables, smart metres, roads and digital infrastructure. NIIF’s investment in Mopa airport shall be the Master Fund’s sixth investment…In line with the fund strategy, this investment complements the existing portfolio and is the first step for NIIF to expand its presence in the airport sector,” said Vinod Giri, managing partner – Master Fund, NIIF.
NIIFL is a government-led collaborative investment platform for international and Indian investors, managing over $4.3 billion of equity capital commitments across its three funds: Master Fund, Fund of Funds, and Strategic Opportunities Fund.
Last month, NIIF signed a memorandum of understanding (MoU) with Japan Bank for International Cooperation (JBIC) to promote Japanese investments in India. The partnership is aiming for an investment of $500 million to $700 million in a new bilateral India-Japan Fund (IJF), which will make equity investments in environmental preservation and low carbon emission strategies.
NIIF has backed several sustainable and climatetech companies, including Ayana Renewable Power, IntelliSmart Infrastructure, Ather Energy and the Green Growth Equity Fund.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
