Latham & Watkins Advises Clifford Capital on the Inaugural Infrastructure Project Finance Securitization in Asia

Transaction creates a new asset class to facilitate institutional investor access to infrastructure debt in Asia-Pacific and the Middle East.

July 27, 2018

Latham & Watkins represented Clifford Capital Pte. Ltd. (“Clifford Capital”), a Singapore-based specialist arranger and provider of project and structured finance solutions, as the sponsor, manager and subordinated note investor of the first infrastructure project finance securitization in Asia, which successfully priced on 25 July 2018. This significant milestone creates a new asset class to facilitate institutional investor access to infrastructure debt in Asia-Pacific and the Middle East and consists of a pre-assembled US$458 million portfolio of marquee project and infrastructure loans diversified across 16 countries of project and 8 industry sub-sectors.

Four classes of Notes were issued by Bayfront Infrastructure Capital Pte. Ltd. (“BIC”) and three classes of investment grade rated notes (Class A, B and C Notes) were offered to institutional investors and will be listed on SGX-ST. Strong demand was seen from a variety of institutional investors including insurance companies, pension funds, endowment funds, family offices, specialized asset managers as well as individual sophisticated investors.

The Infrastructure Take-Out Facility (“TOF”) has been designed and structured by Clifford Capital with a view to mobilizing institutional capital for infrastructure debt in Asia-Pacific and the Middle East by facilitating the transfer of exposure in long-term project and infrastructure loans from banks to institutional investors. Clifford Capital believes that the TOF presents a significant opportunity for institutional investors, who have historically had limited access to high-quality infrastructure debt through the capital markets in the Asia-Pacific and the Middle East regions.

The joint global Coordinators were Citigroup and Standard Chartered, with DBS Bank, Hongkong and Shanghai Banking Corporation, SMBC Nikko Capital Markets, and MUFG Securities acting as Joint Bookrunners and Lead Managers.

Timothy Hia, finance partner at Latham & Watkins, said: “We congratulate Clifford Capital on this important milestone. This first-of-a-kind project finance securitization is a key development in the Asian capital markets, and we are thrilled to have advised Clifford Capital in the establishment of this asset class.”

The Latham team was led by Singapore partners Timothy Hia and Michael Sturrock, with London partner Sanjev Warna-kula-suriya, Los Angeles partner Vicki Marmorstein, New York partner Loren Finegold, London associates Boin Cheong and Delyth Hughes and Singapore associate Kelly Teoh. Further support was provided by Latham’s market-leading Project Finance team, led by Singapore partner Stephen McWilliams with Tokyo counsel Richard Chul Kim.

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