Clifford Capital, AIIB unveil Bayfront Infrastructure Management platform

Clifford Capital and the Asian Infrastructure Investment Bank (AIIB) have announced the establishment of Bayfront Infrastructure Management - a platform designed to mobilise a new pool of institutional capital for infrastructure debt in Asia. 

Clifford Capital and AIIB will be taking a 70% and 30% equity stake in BIM respectively. 

BIM - which aims to unlock capital for infrastructure financing by facilitating the recycling of capital and liquidity by banks, who have traditionally been the largest lenders in this sector - will acquire predominantly brownfield project and infrastructure loans from financial institutions, warehouse and manage them, with the objective of distributing securitised notes to institutional investors in the public markets.

The platform will also sponsor, structure, and manage such distribution issuances, as well as invest in the equity tranches or vertical slices of its securitisation issuances to demonstrate alignment of interest with investors. BIM is expected to be capitalised at $1.98 billion, comprising $180 million in equity and $1.8 billion in debt issuance capacity. 

AIIB will invest $54 million, representing 30% of BIM’s equity capital, with the remaining $126 million contributed by a new holding company to be established by Clifford Capital.