Singapore’s Bayfront prices US$410 million infrastructure asset-backed securities

SINGAPORE-BASED Bayfront Infrastructure Management has established a new distribution vehicle with a portfolio of US$410.3 million to provide investors with exposure to infrastructure asset-backed securities (IABS), it said on Wednesday (Sep 13).

The new distribution vehicle, called Bayfront Infrastructure Capital IV, is spread across 40 individual bonds, 33 projects, 15 countries and 10 industry sub-sectors, the company said.

Bayfront has acquired 20.6 million preference shares, equivalent to 5 per cent of the capital structure of the IABS, it added.

Asian Infrastructure Investment Bank (AIIB), one of the world’s largest multilateral development institutions, participated in the transaction as an anchor investor, Bayfront said.

This is the third time AIIB is participating in such a transaction as an anchor investor, the company added.

The UK Foreign Commonwealth & Development Office also committed an anchor investment of up to US$20.4 million in the preference shares and received a final allocation of US$5.0 million, which is equivalent to 5 million preference shares, Bayfront said. REUTERS