GMR Airports Ltd and National Investment and Infrastructure Fund (NIIF) on Wednesday announced a financial partnership under which NIIF will invest in three airport projects.

The investment by NIIF will include Rs 631 crore in the greenfield international airport at Mopa (Goa), which is set for inauguration on December 11.

This will be NIIF’s first investment in the domestic airport sector and its first direct investment in Goa, GMR said in a release.

GMR Airports Limited (GAL) is a subsidiary of GMR Infrastructure Ltd.

According to GMR, the transaction envisages NIIF making a primary investment of Rs 6.31 billion (Rs 631 crore) in the form of Compulsory Convertible Debenture (CCD) in GMR Goa International Airport Limited (GGIAL), a special purpose vehicle to run and operate the new Goa airport.

The transaction is subject to customary completion conditions and necessary approvals, GMR added.

In addition to Goa, “our partnership with NIIFL will also extend to two more airports (including the upcoming greenfield airport at Bhogapuram in Andhra Pradesh)”, said GBS Raju, business chairman for airports at GMR Group.

NIIF believes that Mopa international airport will boost air connectivity to the state and provide strong tailwinds to the tourism-linked economy of Goa, said Vinod Giri, managing partner — MasterFund, National Investment and Infrastructure Fund Limited.

“NIIFL’s Master Fund is India’s largest infrastructure fund and has built a robust and well-diversified portfolio across ports and logistics, among others. NIIF’s investment in Mopa airport will be the Master Fund’s sixth investment,” said Giri.

In line with the fund strategy, this investment complements the existing portfolio and is the first step for NIIF to expand its presence in the airport sector, he added.