The alternate assets management arm of Kotak Mahindra Group, Kotak Investment Advisors Limited (KIAL) has announced the closing of its infrastructure credit fund, Kotak Infrastructure Investment Fund (KIIF). The Rs 6,000 crore Fund is a category II Alternate Investment Fund, which has received significant commitments from marquee investors.

Share Market Live

NSE

KIIF has received commitments worth Rs 5,328 crore from its anchor investors, comprising Canada Pension Plan Investment Board and the multilateral development bank, Asian Infrastructure Investment Bank, KIAL said in a release.

In a notable development, it is the first time an infrastructure credit fund like KAIF has been set up with significant commitments from leading international investors, according to KIAL.

“KIIF is a differentiated offering in an otherwise crowded infrastructure investing market dominated by equity investors. It attempts to measure and price risk better than equity, and will deliver superior risk-adjusted returns to its LPs,” said Suman Saha, CEO of KIAL.

The Kotak Infrastructure Investment Fund aims to extend credit solutions as well as capital for growth to stressed infrastructure assets, and aid in solving the issues of balance sheet correction, persisting in infrastructure assets.

“AIIB’s investment is expected to help improve the mobilisation of innovative risk capital from institutional investors, and we are excited to support the long-term financial sustainability of selected infrastructure companies in India,” said Dongik Lee, Director General, Banking Department,

AIIB.

Shares of Kotak Mahindra Bank ended 0.16 percent higher at Rs 1,868.70 apiece on Tuesday.