• Bayfront Infrastructure Capital V (BIC V) is the second collaboration between Bayfront and GuarantCo, part of the Private Infrastructure Development Group.
• GuarantCo guarantees the mezzanine debt tranche within the capital structure (Class D for this issuance), which is fully subscribed by the Bank of the Philippine Islands (BPI) and Chandra Asri Trading Company Pte. Ltd. (CATCO), helping to support the financing or refinancing of sustainable infrastructure projects in Asia.
• This is the first time that BPI and CATCO have invested in a debt issuance guaranteed by GuarantCo.
Clifford Capital, a leading infrastructure debt financing platform based in Singapore, is pleased to announce the successful achievement of the Group’s fifth public infrastructure asset-backed securities (IABS) transaction and its largest to date.
BIC V is a wholly owned and newly incorporated distribution vehicle of Bayfront Infrastructure Management (Bayfront), a subsidiary of Clifford Capital.
Through the issuance of IABS, Bayfront offers investors exposure to a diversified portfolio of project and infrastructure loans across multiple geographies and sectors, and through this transaction GuarantCo is furthering its work to enhancing secondary market liquidity in its target markets. Bayfront and its IABS product help to address the infrastructure financing gap in Asia Pacific by mobilising institutional capital for project and infrastructure debt. IABS further address the limited investment grade opportunities in emerging markets infrastructure for institutional investors and provide banks an effective avenue for recycling capital into new projects.
Whilst the Class A1, Class A1-SU, Class B and Class C Notes are rated investment grade by Moody’s and would be listed on the Singapore Exchange, the Class D Notes (amounting to USD 20.3 million), which are unrated and unlisted, benefit from a guarantee from GuarantCo (rated A1 by Moody’s and AA- by Fitch) for principal and interest amounts payable. The provision of the guarantee by GuarantCo in relation to the Class D Notes helps to support the financing or refinancing of sustainable infrastructure projects and infrastructure debt as permitted by PIDG’s investment policy.
BIC V features a portfolio size of approximately USD 508.3 million spread across 37 individual loans and bonds 36 projects, 15 countries and 10 industry sub-sectors. Amongst all IABS issued to date, BIC V has the highest proportion of sustainable assets, with a total commitment amount of USD 218.4 million of eligible green and social assets, as defined under Bayfront’s Sustainable Finance Framework which represent 43 percent of the total portfolio commitment amount.
Nicholas Tan, Chief Executive Officer of Bayfront, said:
“We are pleased that the IABS programme continues to help facilitate institutional participation in infrastructure debt as an asset class. We are proud to partner with GuarantCo / PIDG again to enhance our IABS programme, and our fifth public IABS issuance, with a significant over-subscription rate, firmly validates robust demand from infrastructure investors to access this attractive investment opportunity.”
Layth Al-Falaki, Chief Executive Officer of GuarantCo, said:
“We are delighted to have provided a guarantee to an international asset backed securitisation structure for the second time following our first transaction in September 2023. The transaction presents a sustainable solution to support the building of green and social assets in the region. Our involvement in this novel asset class further strengthens our strategic ambition to mobilise private sector institutional capital, help develop secondary markets for such products and to continue to bridge the infrastructure financing gap to the benefit of local capital markets and the local people. This also aligns well with GuarantCo’s strategy of doing replicable transactions to help create scale and further mobilise and crowd-in private sector capital”
Andre Khor, Chief Financial Officer of Chandra Asri Group, said:
“Chandra Asri’s investment in Clifford Capital’s Bayfront Infrastructure Capital V Pte. Ltd. (BIC V) is another testament of our strong confidence in this asset class, as we look to realise the strategic growth aspirations of our infrastructure business. Our Group is committed to supporting green and sustainable infrastructure projects. Chandra Asri’s robust cash balance enables us to make substantial investments with confidence, to achieve our overarching goal of high-impact social and economic investing.”
Eric Luchangco, Chief Finance Officer and Chief Sustainability Officer of BPI, said:
“We are pleased to be part of this meaningful transaction, which aligns with BPI’s commitment to sustainable finance. By investing in Bayfront Infrastructure Capital V’s IABS Class D tranche, which is backed by GuarantCo, we are supporting the development of sustainable infrastructure projects that will have a lasting, positive impact on communities across Asia Pacific in particular. This subscription underscores BPI’s dedication to driving growth through responsible and impactful investments.”
