NIF policy proposes 7pc minimum equity return, caps project exposure
The policy, currently before the National Assembly’s Finance and Planning Committee, proposes that no more than 40 percent of the Fund’s assets be invested in a single sector, while exposure to one project would be capped at 20 percent of the Fund’s assets.
The National Infrastructure Fund (NIF) has proposed a policy that sets a minimum expected equity return of 7 percent and caps the fund's exposure to individual sectors and projects. The proposed policy, currently before the National Assembly’s Finance and Planning Committee, limits the Fund's exposure to a single sector to 40 percent and exposure to one project to 20 percent of the Fund's assets.
Additionally, infrastructure projects financed through the Fund must have a minimum debt capacity of 60 percent through non-recourse project debt, and the Fund is barred from undertaking balance-sheet borrowing. The NIF aims to finance large-scale infrastructure by pooling public and private capital, reducing reliance on external borrowing and taxpayer funding.
Eligible projects include national highways, railway networks, airports, seaports, and electricity generation, transmission, and distribution infrastructure.
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