Finance
Germany's DEG makes maiden bet on India debt fund via Vivriti's GIFT City vehicle, sources say
Published by Global Banking and Finance Review
Posted on January 14, 2026
Home > Finance > Germany's DEG makes maiden bet on India debt fund via Vivriti's GIFT City vehicle, sources say
DEG Makes First Investment in Indian Debt Fund Through Vivriti
DEG's Historic Investment in Indian Debt Fund
By Khushi Malhotra
Overview of the Investment
MUMBAI, Jan 14 (Reuters) - German development finance institution DEG has approved its first-ever investment in an Indian debt fund, committing capital to Vivriti Asset Management's asset-backed securitisation fund based in GIFT City, two people familiar with the matter said.
Significance of GIFT City
Indian Prime Minister Narendra Modi is pitching GIFT City as a finance hub to rival centres like Dubai and Singapore.
Fund Details and Future Prospects
DEG, part of the KfW Group, will invest $25 million in Vivriti India Retail Assets Fund, the country's first ABS fund based in GIFT City, to support lending to micro and small enterprises and women entrepreneurs, one source said.
The sources requested anonymity because the deal is private. Vivriti did not respond to emailed requests for comment by publication time.
DEG confirmed on email that it has made an investment in VIRAF recently and that it was its first Indian debt fund investment.
The development finance institution has previously backed Indian private equity funds and made direct equity and debt investments in Indian companies.
With DEG's commitment, the fund's corpus will rise to about $190 million, nearing its $250 million target. Other investors in the fund include M&G Catalyst, the International Finance Corporation and British International Investment, the sources said.
Asset-backed securitisation bundles pools of loans together that are sold to investors. They are typically issued as bonds that pay periodic income and return principal at maturity.
The Vivriti fund has a 10-year term, and the asset manager can recycle the $250 million multiple times, one of the sources said, adding that this will enable them to make up to $1 billion of deployments over the decade.
As of December 2025, the fund had cumulatively invested $285 million across 72 asset-backed securitisation and bond transactions.
(Reporting by Khushi Malhotra; Editing by Mrigank Dhaniwala)
Frequently Asked Questions about Germany's DEG makes maiden bet on India debt fund via Vivriti's GIFT City vehicle, sources say
1What is asset-backed securitisation?
Asset-backed securitisation is a financial process where pools of loans are bundled together and sold to investors as securities, typically in the form of bonds that provide periodic income.
2What is GIFT City?
GIFT City, or Gujarat International Finance Tec-City, is a financial hub in India aimed at attracting global financial services and businesses, positioned to compete with international financial centers.
3What are micro enterprises?
Micro enterprises are small businesses that typically have fewer than 10 employees and a low capital requirement, often focusing on local markets and community needs.
4What is the role of DEG in investment?
DEG, part of the KfW Bankengruppe, is a German development finance institution that provides financing for private sector investments in developing countries to promote economic growth.
