A&G News 5 July 2021
Allen & Gledhill advised Bayfront Infrastructure Capital II Pte. Ltd. (“Issuer”), a wholly owned subsidiary of Bayfront Infrastructure Management Pte. Ltd. (“Bayfront”), on the issue of five classes of investment grade rated notes comprising US$176.9 million Class A1 senior secured floating rate notes due 2044 (“Class A1 Notes”), US$120 million Class A1-SU senior secured floating rate notes due 2044 (“Class A1-SU Notes”), US$33.3 million Class B senior secured floating rate notes due 2044 (“Class B Notes”), US$22.1 million Class C senior secured floating rate notes due 2044 (“Class C Notes”), and US$8.8 million subordinated notes due 2044 (“Class D Notes”, and collectively with the Class A1 Notes, Class A1-SU Notes, Class B Notes and Class C Notes, the “Notes”).
Allen & Gledhill also advised BIM Asset Management Pte. Ltd., a wholly owned subsidiary of Bayfront, as collateral manager (“Collateral Manager”), for the transaction.
The five classes of Notes are backed by cash flows from a portfolio of project and infrastructure loans in the Asia-Pacific, Middle East and South America regions.
The Notes were offered to institutional investors and are listed on the Singapore Exchange Securities Trading Limited.
This transaction is a repeat issuance of infrastructure asset-backed securities by the Bayfront platform, following the inaugural transaction in July 2018 through Bayfront Infrastructure Capital Pte. Ltd.. This transaction includes the first ever publicly issued securitised sustainability notes (the Class A1-SU Notes), leveraging on Bayfront’s Sustainable Finance Framework.
The US$401.2 million portfolio of 27 project and infrastructure loans is diversified across 13 countries and eight industry sub-sectors. There was strong demand as seen from a variety of institutional investors including insurance companies, pension funds, multilateral financial institutions, banks, family offices as well as specialised asset managers. The Asian Infrastructure Investment Bank participated in the transaction as an anchor investor.
This transaction is significant in reflecting and advancing Singapore’s role as a full-service Asian infrastructure financing hub in connecting a diverse mix of investors to infrastructure projects in the region. The sustainability tranche is also a good showcase of how Singapore can direct more private capital towards sustainable projects, and recycle capital to support a transition pathway for economies in Asia.