Issue of US$527 million infrastructure asset-backed securities by Bayfront Infrastructure Capital VI Pte. Ltd.
Allen & Gledhill advised Bayfront Infrastructure Capital VI Pte. Ltd. (“BIC VI”) and BIM Asset Management Pte. Ltd. (“BIM Asset Management”), an affiliate of Bayfront, on the issue of US$198.9 million Class A1 senior secured floating rates notes due 2045 (“Class A1 Notes”), US$170 million Class A1-SU senior secured floating rate notes due 2045 (“Class A1-SU Notes”), US$74.8 million Class B senior secured floating rate notes due 2045 (“Class B Notes”), US$35.8 million Class C senior secured floating rate notes due 2045 (“Class C Notes”), US$21 million Class D senior secured floating rate notes due 2045 (“Class D Notes”), and US$26.5 million subordinated notes due 2045 (“Subordinated Notes” and together with the Class A1 Notes, Class A1-SU Notes, Class B Notes, Class C Notes, and 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, Middle East and Americas regions.
This transaction is the sixth, 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 backed by a portfolio of high quality eligible green and social assets. The Class A1-SU Notes are considered Secured Sustainability Standard Bonds under the ICMA Green Bond Principles 2021, Social Bond Principles 2023, and Sustainability Bond Guidelines 2021. Amongst all IABS issued by Bayfront to date, this transaction has the highest proportion of sustainable assets, with an initial aggregate principal balance of US$233.1 million of eligible green and social assets, as defined under Bayfront’s Sustainable Finance Framework, representing 44.2% of the aggregate principal balance of the portfolio.
The Class D Notes also represent the first ever unrated mezzanine tranche to be offered to IABS investors on an unguaranteed basis, following the guaranteed format that was utilised for the Class D notes in prior issuances by Bayfront Infrastructure Capital IV Pte. Ltd. and Bayfront Infrastructure Capital V Pte. Ltd.
Advising BIC VI and BIM Asset Management were Allen & Gledhill Partners Yeo Wico, Jeanne Ong, Sunit Chhabra, Andrew Chan, and Jo Tay.
