The Asian Infrastructure Investment Bank (AIIB) has announced a commitment of US$60 million to Bayfront Infrastructure Management’s (Bayfront) debut issuance of infrastructure asset-backed securities (IABS). AIIB’s anchor investment will set an important benchmark for future infrastructure asset-backed securities, which are a critical part of the market-building process for new asset class creation.

This is AIIB’s second investment related to Bayfront, the first being the Bank’s investment in the corporation as a 30% minority shareholder, which was approved by AIIB’s Board of Directors in 2019. Co-established by AIIB and Clifford Capital, Bayfront is Asia’s first fully-fledged infrastructure securitization platform. It aims to address the infrastructure financing gap in the Asia Pacific region by facilitating the mobilization of private institutional capital into the infrastructure financing market.