The platform builds on the successful issuance of Asia’s first securitization of project finance and infrastructure loans through Bayfront Infrastructure Capital, launched in Singapore in 2018.
Clifford Capital and the Asian Infrastructure Investment Bank (AIIB) have established Bayfront Infrastructure Management, a platform that will provide institutional capital access to infrastructure debt financing in Asia, the firm announced in a statement on Thursday.
The platform's capitalization is expected to be $1.98 billion, comprising $180 million in equity and $1.8 billion in debt issuance capacity. AIIB will invest $54 million, or 30 percent of BIM’s equity capital, while Clifford Capital will contribute the remaining $126 million, the statement said.
Infrastructure Financing Gap
There is a $455 billion infrastructure financing gap in Asia, BIM said, citing Asian Development Bank data. It said it hopes to unlock capital for infrastructure financing by facilitating the recycling of capital and liquidity by banks, who have traditionally been the largest lenders in this sector.
BIM will acquire predominantly brownfield project and infrastructure loans from financial institutions, warehouse and manage them, before securitizing them and issuing structured notes to investors, the statement said. This frees up banks' balance sheets and gives investors exposure to a new investable asset class that is also accessible, it said.
Clifford Capital is 40.5-percent owned by Singapore state investor Temasek.
