Bayfront Infrastructure Capital
USD 410.3 million infrastructure asset-backed securities (IABS) issued by Bayfront Infrastructure Capital IV (BIC IV) and sponsored by Bayfront Infrastructure Management: GuarantCo guarantees Class D tranche, which was fully subscribed by funds managed by Apollo Global Management
GuarantCo’s guarantee enables Bayfront to offer additional volume of notes to institutional investors within the size and structure of the issuance. The guarantee enables Bayfront to issue a Class D credit enhanced tranche to be sold to international institutional investors, improving the credit profile of the intrinsic sub-investment grade rating of the tranche in the process. Investors participating in the tranche will gain access to credit exposures of sustainable infrastructure assets in PIDG eligible markets and sectors.
The Class D Notes were pre-placed and taken up in full by funds managed Apollo Global Management, a global asset manager. This is Apollo’s first investment in IABS issuance from Bayfront and also the first time Apollo has invested in a guaranteed debt issuance from GuarantCo. Overall, this is expected to attract a larger pool of high-quality institutional investors into the transaction, improving secondary market liquidity and increasing market familiarity with this asset class.
The provision of the guarantee by GuarantCo supports the financing or refinancing of sustainable infrastructure projects and infrastructure debt as permitted by PIDG’s investment policy. Significant portion of the funds released via the securitisation with the originating banks are expected to be reinvested into new renewables projects in PIDG eligible markets with a focus on Asia.