The Capital Quest | NIIF and JBIC plan India-Japan fund for climate-related investments

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National Investment and Infrastructure Fund Limited, an Indian government-backed investment company, announced on Thursday that it had signed a memorandum of understanding with the Japan Bank for International Cooperation (JBIC) to boost Japanese investment in India.

The MoU outlines a partnership framework between NIIF and JBIC, which envisages the establishment of an India-Japan Bilateral Fund (IJF). JBIC and the Indian government will invest in the India-Japan Fund, which will invest equity in environmental conservation and low-carbon strategies, the NIIF said.

The IJF will also strengthen cooperation between the two countries by investing in strategic partnerships between Japanese and Indian companies and promoting business collaboration across multiple sectors in India.

In addition, JBIC will consider providing debt financing under its “Global Action to Reconcile Economic Growth and Environmental Conservation” (GREEN) initiative to recipient companies of NIIF-managed funds.

NIIF is already an active investor in sustainable and climate-friendly technologies through its investments in Ayana Renewable Power, IntelliSmart Infrastructure, Ather Energy and the Green Growth Equity Fund. The India-Japan Fund will further contribute to the NIIF having a more significant impact in this area, he said.

“The climate sector and energy transition in India will provide significant investment opportunities and the India-Japan Fund, which is expected to be operational early next year, will participate in these opportunities and foster collaboration between Indian companies. and Japanese,” Sujoy said. Bose, Managing Director and CEO, NIIF.

“Through this partnership, we aim to support economic and environmental cooperation between India and Japan, which is expected to result in increased investment by Japanese companies and investors in India,” Bose said.

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