Bespoke single tranche IABS that fulfilled an Indonesian institutional client's near-term investment needs

Clifford Capital, through its subsidiary Bayfront Infrastructure Management Pte. Ltd. (“Bayfront”), completed its inaugural private placement of infrastructure asset-backed securities (“IABS”) to PT Chandra Daya Investasi (the “Investor”), a strategic infrastructure investment arm of the Chandra Asri Group.

The Investor was issued senior notes with a tenor of 3 years, while Bayfront has retained the entire equity tranche in the form of preference shares. A special purpose vehicle, Clifford Capital IABS PP 2024-01 Pte. Ltd. (the “Issuer”), was established to acquire the portfolio of loan assets and to raise capital by the issuance of the Notes and the preference shares for an aggregate amount of US$103 million (the “Transaction”).

Clifford Capital, through Bayfront, has previously structured and placed four public IABS transactions. The Transaction represents the first IABS structured by the Group to be issued on a private placement basis, enabling a flexible and customised IABS financing solution. The issued Notes are not publicly rated or listed.

This transaction affirms Clifford Capital’s commitment to be a repeat issuer helping plug the infrastructure financing gap in the Asia Pacific region.