Latham Advises Clifford Capital on US$508 Million Infrastructure Asset-Backed Securities Issuance Through Bayfront Infrastructure Capital V

Latham & Watkins has advised Clifford Capital, an infrastructure financing platform based in Singapore, on its fifth public infrastructure asset-backed securities (IABS) transaction through Bayfront Infrastructure Capital V Pte. Ltd. (BIC V). BIC V is a wholly owned and newly incorporated distribution vehicle of Bayfront Infrastructure Management Pte. Ltd. (Bayfront), a subsidiary of Clifford Capital that also includes the Asian Infrastructure Investment Bank (AIIB) as a shareholder. The transaction represents Clifford Capital’s fifth public IABS issuance and its largest to date.

BIC V features a portfolio size of approximately US$508.3 million spread across 37 individual loans and bonds, 36 projects, 15 countries, and 10 industry sub-sectors. Five classes of notes (Class A1, Class A1-SU, Class B, Class C, and Class D) of US$482.8 million in aggregate principal amount were offered to institutional investors. The Class A1-SU Notes represent the dedicated sustainability tranche, which is classified as a Secured Sustainability Standard Bond under the latest International Capital Market Association’s Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines. The Class D Notes benefit from a guarantee from GuarantCo Ltd, which is rated A1 by Moody’s and AA- by Fitch as of June 2024.

Latham previously advised Bayfront on its original issuance in 2018, Bayfront Infrastructure Capital II in 2021, Bayfront Infrastructure Capital III in 2022, and Bayfront Infrastructure Capital IV in 2023, in each case as drafting counsel.

The Latham team was led by Singapore partner Timothy Hia and Hong Kong partner Michael Hardy, with associates Aakash Sardana and Kelly Teoh.