Andhra Pradesh Urban Development Fund (APUDF), a Fund aiming at High Socio-Economic impact while delivering sustainable returns to Investors

Andhra Pradesh Urban Development Fund (APUDF), is a SEBI registered Category II Alternative Investment Fund (AIF) that will invest in Companies or Projects or Urban local bodies or other Urban Development Agencies operating in the State. The strategic objective of APUDF is to build a scalable and sustainable investment framework, which can be leveraged to support socio-economic development while generating reasonable returns to its contributors by investing in commercially viable and bankable projects in the State.

APUDF is targeting an aggregate capital commitment of Rs 5,000 Cr (~USD 750mn) and Government of Andhra Pradesh is the anchor investor in the fund.

Structure of APUDF:

• Fund Name: Andhra Pradesh Urban Development Fund (APUDF).
• Fund Structure: AIF Category II
• Regulations: SEBI (Alternative Investment Funds) Regulations, 2012
• Sponsor: Government of Andhra Pradesh.
• Fund Manager: Andhra Pradesh Urban Infrastructure Asset Management Ltd (APUIAML).
• Fund Size: Rs. 50bn (~US$750mn)
• Term: 20 years with commitment period of 10 years.
• Investment: Fund could issue multiple classes of units to raise funds.
• Components: The investment into the fund will go into two components:
  • Investment Component – for investment into projects and SPVs.
  • Technical Assistance Component – for meeting the expenses to provide Technical Assistance to ULB/ SPV.
• Status: SEBI Registration Approvals Received, Trust formed.