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Kaupthing launches listed fund for Indian infrastructure

The Nordic Bank has listed an infrastructure fund on the LSE to invest in India’s energy and transport sectors, and is close to completing its maiden investment in a hydroelectricity generator.

India Infrastructure plc, a close-ended investment company, has been listed on the main market of the London Stock Exchange, raising £36.7 million ($73 million; €46 million).

The fund is broadly focussed on transport and energy and will invest in renewable and conventional power projects, road portfolios and airport assets, the firm said. It is targeting commitments of between £10 million and £30 million per transaction.

India Infrastructure has finalised its first investment in Shree Mahesh Hydel Power Corporation, which has been established to develop a 400 MW hydroelectric power project in the state of Madhya Pradesh. The fund is investing about £13 million for an equity stake of 20.5 percent, which will be brought down to between 6 and 7 percent following certain dilutions.

Rupert Cottrell, non-executive chairman of Infrastructure India, said in a statement: “The growth prospects for India provide a compelling rationale for investing in the Indian infrastructure sector at this time.”

“We believe that should the Indian infrastructure market develop similarly to the markets in the UK and EU, equity returns will increase as the infrastructure market matures,” said Cottrell.

India Infrastructure has identified a pipeline of deals with potential investments totaling 11.1 billion Indian rupees ($257 million; €162 million). These include a bid with Punj Lloyd, one of India’s largest engineering companies, and a portfolio of roads.

Bloomsbury Asset Management Advisors is the investment adviser to the fund.