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3i India Infrastructure Fund invests $227m in Adani Power25/10/2007. Source: AltAssets. 
 3i, through its 3i India Infrastructure Fund, has invested $272m for a minority stake in Adani Power Private Ltd, a subsidiary of Adani Enterprises Ltd, a member of India-based Adani Group. The transaction gives 3i a reported ten per cent stake in the company, and also marks the first investment made by the fund.
3i India Infrastructure Fund, which is targeting $1bn in commitments, aims to build a portfolio of investments spanning the asset lifecycle. The fund held its first closing in September on $500m in commitments from cornerstone investors 3i and 3i Infrastructure Limited.
Adani Power is currently developing an independent 2,640 megawatt imported coal-based thermal power plant in Gujarat. The project, which launched in June 2006, is expected to become operational by 2009 and achieve full capacity by the end of 2010.
Michael Queen, managing partner of 3i's infrastructure business, said, '3i India Infrastructure is uniquely positioned to access a fast-growing market. This first investment by the fund reflects the richness of the opportunity we see in India and demonstrates our ability to back the right partners and assets in this space.'
Anil Ahuja, managing director and co-head of 3i Asia, added, 'India is witnessing phenomenal growth in the power sector, specifically power generation. Through this transaction, we have invested in a landmark power generation asset as well as reaffirmed our confidence in the Adani Group, whose Mundra Port was backed by us in 2006. Adani Group is a strong partner which has demonstrated its ability to conceptualise and execute large-scale infrastructure projects.'
3i entered into a partnership agreement with India Infrastructure Finance Company Ltd last April. Together with other lenders, IIFCL is also participating in debt funding of the project.
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