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I Squared Capital plans INR 5,000 crore India infrastructure fund to tap domestic investors

#Builders & Projects#Infrastructure#India
Synopsis

Global infrastructure investor I Squared Capital is planning to launch an India-focused infrastructure fund with a target corpus of around INR 5,000 crore, marking a strategic push to attract capital from domestic institutional and high-net-worth investors. The proposed vehicle will focus on sectors such as energy, transportation, logistics and digital infrastructure. The initiative comes as local pension funds, insurance companies and family offices increasingly seek exposure to long-term infrastructure assets, reflecting the growing depth of India's alternative investment ecosystem.

Global infrastructure investment manager I Squared Capital is preparing to launch an India-focused infrastructure fund with a targeted corpus of approximately INR 5,000 crore, as the firm looks to deepen its engagement with domestic investors and expand its presence in one of its largest growth markets. 
The proposed fund is expected to mobilise capital primarily from Indian institutional investors, including insurance companies, pension funds, family offices and high-net-worth individuals. The move reflects a broader trend within India's alternative investment industry, where domestic pools of capital are increasingly participating in infrastructure and private market opportunities that were historically dominated by overseas investors. 
I Squared Capital has been one of the most active foreign infrastructure investors in India over the past decade, deploying approximately USD 4 billion across sectors including roads, renewable energy, utilities, city gas distribution and digital infrastructure. The firm's India portfolio includes several operating platforms that provide essential infrastructure services across the country. 
According to reports, the planned fund will target investments across a range of infrastructure sectors, including energy transition assets, transportation networks, logistics facilities and digital infrastructure. The strategy is expected to align with India's long-term infrastructure development requirements and growing demand for private capital participation in asset creation and operation. 
The fundraising initiative comes at a time when domestic investors are showing increasing interest in infrastructure as an asset class. Regulatory changes, a maturing alternative investment framework and the search for stable long-term returns have encouraged pension funds, insurers and family offices to consider infrastructure allocations as part of their investment portfolios. 
The proposed vehicle would complement I Squared Capital's existing investment activities in India. Earlier this year, the firm announced the launch of Cube Grid, a dedicated power transmission platform backed by plans to invest up to USD 1 billion in India's electricity transmission sector. The platform aims to build and operate transmission infrastructure to support the country's expanding renewable energy capacity and growing electricity demand. 
India remains a key market for the Miami-headquartered investor, which manages more than USD 60 billion in assets globally and has investments spanning energy, transportation, utilities, digital infrastructure and environmental services. The firm has repeatedly identified India as a long-term growth opportunity driven by urbanisation, rising consumption, infrastructure expansion and the energy transition. 
Industry experts note that the launch of a domestically oriented infrastructure fund could help broaden participation in India's infrastructure growth story while providing local investors access to professionally managed infrastructure assets. As infrastructure investment requirements continue to rise across sectors, fund managers are increasingly looking to mobilise domestic capital alongside global institutional funding. 
The proposed INR 5,000 crore fund is expected to be launched over the coming months, subject to regulatory processes and investor commitments, further strengthening the role of private capital in financing India's infrastructure development pipeline.

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