The National Investment and Infrastructure Fund (NIIF), on Wednesday announced to pick up an equity stake in GMR Goa International Airport (GGIAL) for Rs 631 crore (around $76.5 million). The deal will be the form form of compulsory convertible debentures (CCD).

GGIAL, backed by GMR Airports (GAL) – is a partnership between India’s GMR group and French government-backed Group ADP. The company has developed has developed and operated airports in over nine countries and it is currently operates in five airports across India.

However, the deal is subject to necessary approvals. This is the first investment by the firm in an airport asset. Furthermore, it will be its first direct investment in Goa.

The latest collaboration between NIIF and GAL will also result in the government-backed fund acquiring a stake in two other airport projects, including an international airport in Bhogapuram, Andhra Pradesh.

In 2016, GGIAL, a special purpose vehicle, was awarded the design-build-finance-operate-and-transfer (DBFOT) contract to develop and operate a second airport in Goa.

According to the press release, in the first phase, Mopa International Airport shall be have a capacity to cater about 44 lakh passengers per annum. Moreover, after all the phases, the airport will have an ultimate capacity of up to 4 crore passengers per annum.

Commenting on the development, Vinod Giri, managing partner – Master Fund, NIIF, 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.”

The National Investment and Infrastructure Finance Limited (NIIFL) is a government-led collaborative investment platform for international and Indian investors, managing over $4.3 billion in equity capital commitments across three funds: the Master Fund, the Fund of Funds, and the Strategic Opportunities Fund.

NIIF signed a memorandum of understanding (MoU) with Japan Bank for International Cooperation (JBIC) last month to promote Japanese investment in India. The partnership hopes to invest $500-700 million in a new bilateral India-Japan Fund (IJF) that will make equity investments in environmental preservation and low-carbon emission strategies.

Ayana Renewable Power, IntelliSmart Infrastructure, Ather Energy, and the Green Growth Equity Fund are among the companies that have received funding from NIIF.

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