China-based Asian Infrastructure Investment Bank and Singapore's Clifford Capital Pte. Ltd. established a jointly owned infrastructure financing platform called Bayfront Infrastructure Management Pte. Ltd.

Bayfront Infrastructure Management, which is expected to begin operations in the first quarter of 2020, aims to address the infrastructure financing gap across Asia-Pacific by facilitating the mobilization of private institutional capital into the infrastructure financing market, according to separate Nov. 28 releases.

The joint venture will mainly acquire brownfield project and infrastructure loans from financial institutions, warehouse and manage them, with the aim of distributing securitized notes to institutional investors in the public markets. It will also sponsor, structure and manage such distribution issuances and invest in the equity tranches or vertical slices of its securitization issuances to demonstrate alignment of interest with investors.

Clifford Capital will hold a 70% stake in the new entity, while Asian Infrastructure Investment Bank will hold the remaining 30% stake.

Bayfront Infrastructure Management is expected to have US$1.98 billion of capital, comprising US$180 million in equity and US$1.8 billion in debt issuance capacity.

Asian Infrastructure Investment Bank will invest US$54 million, while US$126 million will be contributed by a new holding company to be formed by Clifford Capital.