News Column

India : BOOSTING the infrastructure sector with PE FUNDS that is worth $5 billion

August 30, 2014

The new government is boosting the infrastructure sector PE funds as it raises close to $5 billion for India s infrastructure sector.

The sector is expected to require $150 billion of equity as mezzanine funding to meet the $1 trillion target by 2017 to power, ports, roads and renewable sectors.

Recent fund raising activities and plans:

- Piramal Enterprises L committed $1 billion in a tie-up with Dutch pension fund APG Asset Management for investment in the infrastructure sector.

- The infrastructure finance arm of engineering giant Larsen & Toubro, L&T Infrastructure Finance Company Limited was planning to raise $1 billion PE fund to invest in power, roads, ports and other projects.

- ILFS Investment Limited or ILFS IML, the private equity arm of local infrastructure was raising $1 billion from primarily overseas investors.

- IDFC Alternatives received binding commitment $644 Mn in September for its second India-focused core infrastructure fund launched in January 2013 with initial target of $1 billion.

- Besides, another $2.5 billion is expected to be dedicated for India out of the estimated $7.5 billion currently getting raised by global fund managers such as Morgan Stanley Infrastructure, KKR & Co and J P --

- Morgan Chase & Co for their global infrastructure investment funds.

In a major boost to the real estate and infrastructure sector over $20 billion has been invested into these stressed sectors from both foreign and domestic investors, which was approved the SEBI (Real Estate Investment Trusts) Regulations and SEBI (Infrastructure Investment Trusts) Regulations, 2014.

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Source: TendersInfo (India)

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