Bayfront Infrastructure Capital IV (BIC IV)

Through the MOBILIST programme, the UK government invested US $5 million of anchor equity capital in an infrastructure asset-backed securitisation vehicle sponsored by Bayfront Infrastructure Management.

MOBILIST invested in preference shares in Bayfront Infrastructure Capital IV, the fourth infrastructure asset-backed securities transaction sponsored by Bayfront Infrastructure Management, a Singapore-based platform with a mandate to invest in and distribute project and infrastructure loans.

The transaction involved the securitisation of a portfolio of project and infrastructure loans and bonds into infrastructure asset-backed securities, now listed on the Singapore Exchange (SGX Group).

MOBILIST committed an anchor investment of up to US$20.4m in the vehicle and received a final allocation of US$5 million, given investors’ robust demand for the notes. The vehicle is expected to catalyse over US$410.3 million of institutional investment in strategic infrastructure projects across Asia.

The transaction demonstrates how investments in the equity tranche of a debt securitisation vehicle can have a significant multiplier effect by enabling both commercial banks and multilateral development banks (MDBs) to accelerate the rate at which they can recycle capital.