Issue of US$802.4 million infrastructure asset-backed securities by Bayfront IABS IX Pte. Ltd.
Allen & Gledhill advised Bayfront IABS IX Pte. Ltd. (“Bayfront IABS IX”) on the issue of five classes of notes comprising of US$553.7 million Class A senior secured floating rate notes due 2041 (“Class A Notes”), US$128.4 million Class B senior secured floating rate notes due 2041 (“Class B Notes”), US$48.1 million Class C senior secured floating rate notes due 2041 (“Class C Notes”), US$32.1 million Class D senior secured floating rate notes due 2041 (“Class D Notes”), and US$40.095 million subordinated perpetual notes (“Subordinated Perpetual Notes” and together with the Class A Notes, the Class B Notes, the Class C Notes, and the Class D Notes, “Notes”).
The Notes are backed by cash flows from a portfolio of project and infrastructure loans and bonds in the Asia-Pacific, Europe, North America, and South America.
Bayfront IABS IX is a wholly owned and newly incorporated distribution vehicle of Clifford Capital Asset Finance Pte. Ltd., a subsidiary of Clifford Capital Holdings Pte. Ltd. (“CCH” and together with its subsidiaries, “Clifford Capital Group”) that also includes the Asian Infrastructure Investment Bank as a shareholder.
This transaction features Clifford Capital Group’s third successive infrastructure asset-backed securities (“IABS”) issuance in Rule 144A/Reg S format, extending its reach to a broader global institutional investor base. This is also Clifford Capital Group’s largest IABS transaction to date, and Clifford Capital Group’s IABS issuances remain the only IABS/Infrastructure CLO globally to feature dual credit ratings from two rating agencies, Moody’s and Fitch, for its Class A Notes.
Through the issuance of IABS, the Clifford Capital Group aims to offer investors exposure to a diversified portfolio of project and infrastructure loans and bonds across multiple geographies and sectors. In doing so, it seeks to address Asia-Pacific’s infrastructure financing gap by creating a new asset class, mobilising a new pool of institutional capital for project and infrastructure debt while helping banks recycle capital into new infrastructure financing transactions. This ninth transaction demonstrates continued investor demand for IABS and Clifford Capital Group’s ability to help partner banks with their capital recycling.
Advising Bayfront IABS IX were Allen & Gledhill Partners Yeo Wico, Jeanne Ong, Andrew Chan, Jo Tay, and Sunit Chhabra.
