The National Investment and Infrastructure Fund (NIIF) of India has announced the acquisition of IDFC Infrastructure Finance Limited (IDFC-IFL), a Non-Banking Finance Company that is registered with the Reserve Bank of India as an Infrastructure Debt Fund.

IDFC-IFL lends to operating infrastructure projects, and thereby enables the original project financiers to recycle their capital following the commencement of operations. The company has a loan book of more than INR45 billion (US$618.0 million), strong asset quality and no material repayment obligations for the next two years.

This acquisition is the first investment from NIIF’s Strategic Fund and the first control transaction for NIIF. The acquisition is subject to approval from RBI and customary closing conditions.

The acquisition is intended to enable NIIF to play a meaningful role in the private debt space in Indian infrastructure, addressing a growing need given India’s infrastructure ambition and an emerging gap as traditional infrastructure lenders consolidate.