The Asian Infrastructure Investment Bank has approved an equity investment of $150 million in an India-focused fund as well as two loans totalling $174 million to support projects in Georgia and Tajikistan.
This is the first equity investment made by the Beijing-based multilateral, which will see the India Infrastructure Fund, managed by an unnamed GP, raise a further $600 million from institutional investors.
It is unclear in which India-focused vehicle AIIB is investing. AIIB did not identify the GP but described the fund manager as a “leading global infrastructure investment and management platform, with a team of over 75 staffs, including 35 infrastructure investment professionals located in financial centres around the world”.
AIIB had not responded to queries seeking further information at the time of publication.
According to the lender, the India-focused vehicle will invest in infrastructure platforms and services companies with high growth potential, in sectors including energy and utilities, transportation and logistics, telecommunications, urban PPPs, healthcare and education.
The AIIB hopes the India Infrastructure Fund can help it create a pipeline of projects for future investments.
Earlier this May, the AIIB also approved its first loan of $160 million to India, supporting the state of Andhra Pradesh as it seeks to strengthen its power transmission and distribution system.
Other recently approved loans include a $114 million financing for the Georgia Batumi Bypass Road project, co-financed with the Asian development Bank, and a $60 million commitment to the first phase of the Tajikistan Nurek Hydropower Rehabilitation project, which is co-financed with the World Bank’s IDA Credits and Grants.