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Tamil Nadu raising $600 million from Phoenix of Luxembourg

The Tamil Nadu government is raising around $600 million (about Rs 4,000 crore) as investment from Phoenix SA of Luxembourg through its asset management company (AMC) Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC).

The Tamil Nadu government is raising around $600 million (about Rs 4,000 crore) as investment from Phoenix SA of Luxembourg through its asset management company (AMC) Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC). TNIFMC has been formed under the Tamil Nadu Infrastructure Development Board (TNIDB) to generate additional resources for the implementation of infrastructure projects in the state. “Phoenix SA (Luxemburg), the advisors for Treetop Asset Ventures SA, has given a letter of intent (LoI) for a total investment of $600 million (about Rs 4,000 crore) with an initial contribution of $25 million (about Rs 160 crore), subject to due diligence,” said a policy note of the state’s finance department.

The investment will be done into Tamil Nadu Infrastructure Fund (TNIF), managed by TNIFMC. Life Insurance Corporation of India (LIC) has agreed to invest Rs 150 crore or upto 20% of the TNIF’s toal size, while Chennai-based public sector lender Indian Bank has given a LoI offering to invest around Rs 25 crore.

TNIFMC is also taking steps for mobilising investments into TNIF from entities such as General Insurance Company (GIC), Rural Electrification Corporation and Power Finance Corporation. TNIFMC will operate as an independent and professional board run company with board of directors as per Sebi (Securities and Exchange Board of India) regulations. An independent investment committee comprising experts from technical, financial, commercial and legal fields will be formed to appraise investment infrastructure projects in the state.

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