Issue of US$508.3 million infrastructure asset-backed securities due 2043 by Bayfront Infrastructure Capital V Pte. Ltd.
Allen & Gledhill advised Bayfront Infrastructure Capital V Pte. Ltd. (“BIC V”) and BIM Asset Management Pte. Ltd. (“BIM Asset Management”), a wholly owned subsidiary of Bayfront (“Bayfront”), on the issue of US$208.7 million Class A1 senior secured floating rate notes due 2043, US$145 million Class A1-SU senior secured floating rate notes due 2043, US$76.8 million Class B senior secured floating rate notes due 2043, US$32 million Class C senior secured floating rate notes due 2043, and US$20.3 million Class D senior secured floating rate notes due 2043 (collectively, “Notes”).
The five classes of Notes are backed by cash flows from a portfolio of project and infrastructure loans and bonds in the Asia-Pacific, Middle East, Africa and Americas regions. The Class A1 Notes, Class A1-SU Notes, Class B Notes and Class C Notes are rated investment grade by Moody’s and listed on SGX-ST. The Class D Notes are unlisted and unrated, and guaranteed by GuarantCo Ltd. (rated AA- by Fitch and A1 by Moody’s), a contingent credit solutions provider that is part of the Private Infrastructure Development Group.
This transaction is the fifth and largest issuance of infrastructure asset-backed securities (“IABS”) by the Bayfront platform to date, demonstrating Bayfront’s track record and commitment of being a repeat, programmatic issuer of IABS. This transaction continues to feature a sustainability tranche (Class A1-SU) backed by a portfolio of high quality eligible green and social assets. The Class A-1 SU Notes are considered Secured Sustainability Standard Bonds under the International Capital Market Association (ICMA) Green Bond Principles 2021, Social Bond Principles 2023 and Sustainability Bond Guidelines 2021. Among all IABS issued by Bayfront to date, this transaction has the highest proportion of sustainable assets, with an initial aggregate principal balance of US$218.4 million of eligible green and social assets, as defined under Bayfront’s Sustainable Finance Framework, which represent 43% of the aggregate principal balance of the portfolio.
This transaction also features an expanded ESG focus on assets within "new economy" sectors, including renewable energy, digital infrastructure, transportation and education.
Advising BIC V and BIM Asset Management were Allen & Gledhill Partners Yeo Wico, Jeanne Ong, Andrew Chan, Jo Tay, and Sunit Chhabra.
