The National Investment and Infrastructure Fund, on Wednesday announced that it will pick up an equity stake in GMR Goa International Airport Ltd (GGIAL) for Rs 631 crore (around $76.5 million) in the form of compulsory convertible debentures (CCD).
GGIAL - promoted by GMR Airports Ltd (GAL) - is a partnership between India’s GMR group and French government-backed Groupe ADP. It has developed and operated airports in over nine countries and presently operates five airports in India.
The deal is subject to necessary approvals. This investment will be NIIF’s first in an airport asset in the country and also its first direct investment in Goa.
The latest partnership between NIIF and GAL will also see the government-backed fund to 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 has built a portfolio across ports and logistics, renewables, smart meters, 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 around $500-700 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 funds as well as companies, including Ayana Renewable Power, IntelliSmart Infrastructure, Ather Energy and the Green Growth Equity Fund.