A $1 billion infrastructure fund jointly managed by the State Bank of India (SBI) and Australia’s Macquarie Group is aiming to raise a further $500 million in order to help meet India’s infrastructure needs.
According to a report by Reuters, SBI and Macquarie, which closed the 10-year Macquarie-SBI Infrastructure Fund (MSIF) in April on $1.037 billion, aim to raise the additional capital by September.
SBI, which is managing the fundraising through its SBI Capital Markets division, has already committed $150 million to the vehicle. The remainder was raised from foreign investors.
The total equity target for the fund is between $2 billion and $3 billion. The fund plans to invest in “traditional infrastructure assets that generate long term identifiable cash flows, and that exhibit essential characteristics,” Macquarie said back in April.
These would include roads, sea ports, airports, power generation, transmission and distribution, gas distribution, telecommunications opportunities.
The formation of the fund is one of a number of infrastructure vehicles in the country trying to address the need for close to $500 billion of investment over the next five years, according to the Planning Commission of India.