The Asian Infrastructure Investment Bank (AIIB) and Clifford Capital have set up a US$2bn (€1.8bn) Asia infrastructure debt financing platform.
The duo have established the Bayfront Infrastructure Management (BIM) platform – expected to be operational from the first quarter of next year – to “mobilise a new pool of institutional capital” for infrastructure debt.
China-backed AIIB and Clifford Capital, which was established with support from the Government of Singapore, will take a 30% and 70% equity stake in the newly created BIM platform respectively.
AIIB is expected to invest US$54m for its stake, with the remaining US$126m contributed by a new holding company to be established by Clifford Capital. BIM is also expected to raise US$1.8bn, taking its total capital to US$1.98bn.
In a joint statement, companies said BIM will acquire ”predominantly brownfield project and infrastructure loans from financial institutions, warehouse and manage them, with the objective of distributing securitised notes to institutional investors” in the public markets.
”BIM will also sponsor, structure and manage such distribution issuances and invest in the equity tranches or vertical slices of its securitisation issuances to demonstrate alignment of interest with investors.”
DJ Pandian, AIIB vice president and CIO, said: “AIIB’s investment in BIM is closely aligned with our objectives of developing Asian infrastructure as an asset class and supporting private capital mobilisation.
“Through robust environmental, social and governance criteria, the platform provides institutional investors with a unique opportunity to support sustainable infrastructure projects in Asia.”
Clive Kerner, Clifford Capital CEO, said: “This is an important milestone for Clifford Capital as we progress from the successful launch of the infrastructure takeout facility with Bayfront Infrastructure Capital (BIC) to the establishment of BIM.”
BIC was established last year in connection with the creation of an infrastructure take-out facility that was designed and structured by Clifford Capital to mobilise institutional capital for infrastructure debt in Asia-Pacific and the Middle East.
Premod Thomas, BIM CEO-designate, said: “Leveraging on the success of BIC, we are now committed to developing BIM as a long-term sustainable platform to encourage institutional investor participation in the fast-growing infrastructure funding needs in Asia-Pacific and the Middle East.
“We look forward to working with AIIB and our bank partners as we leverage our platform to create sustainable investment products for institutional investors.”
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