| Project Detail |
OBJECTIVE
The Project seeks to advance private capital mobilization through an investment in an issuance of infrastructure asset backed securities (IABS) sponsored by Bayfront Infrastructure Management Pte Ltd, a Singapore-based entity with a mandate to invest in and distribute infrastructure debt in the Asia Pacific and Middle East regions.
DESCRIPTION
AIIB is considering a potential anchor investment into the issuance of IABS sponsored by a Singapore-based entity with a mandate to invest in and distribute infrastructure debt in the Asia Pacific and Middle East regions, building on the “proof of concept” securitisation issuance that was executed by a related company of the sponsor in 2018. The issuance, which will be listed on the Singapore Exchange Securities Trading Limited, is collateralized by a portfolio of diversified infrastructure and project finance loans with a concentration of projects located in Asia.
The securitization market is a potential solution to Asia’s infrastructure financing gap by providing an instrument, i.e., rated and listed debt securities, for institutional investors to access emerging market infrastructure assets in bite-sized amounts with diversified exposure across multiple projects. Given that this is only the second ever such issuance in Asia, the Project will set benchmarks for future primary issuances which is a critical part of the market-building process for any new asset class. |
