Clifford Capital, a Singapore-based infrastructure credit financing platform, has garnered attention in the structured finance industry due to its innovative approach to financing global projects. The firm, backed by the Singapore government, recently completed its fifth public infrastructure asset-backed securities (IABS) transaction, signifying a major achievement in its journey.
In a recent interview with FinanceAsia, P. Murlidhar Maiya, the CEO of Clifford Capital, discussed emerging trends in infrastructure debt financing and the firm’s scalability.
Maiya emphasized the company’s role in filling the financing gap for long-tenor credit in infrastructure projects, supported by over $5 billion of government guarantees. This has allowed Clifford Capital to raise capital at a competitive cost and provide credit across extended tenors through its rigorous analysis and sustainability focus, resulting in innovative debt financing solutions across various infrastructure sectors.
Apart from renewables and digital infrastructure, Maiya highlighted the growing interest in data centres, influenced by AI and long-term contracts with major cloud service providers. The company also sees increased interest in long-tenor financing for social infrastructure, industrials, and transportation, reflecting the changing landscape of infrastructure investments.
Clifford Capital primarily supports Singapore-based companies or those closely tied to the country, offering them debt financing for regional and global investments. The company emphasizes thorough credit assessment and market-based pricing to achieve positive commercial outcomes while meeting public policy goals.
Sustainability is a central focus for Clifford Capital, with a significant portion of new primary loans directed towards green and/or sustainable infrastructure projects. Maiya stressed the impact of sustainability on the market and highlighted the substantial funding required for the green transition, along with the role of blended finance in unlocking capital for sustainable development.
When it comes to infrastructure project debt financing, Clifford Capital distinguishes itself by taking on greenfield construction risk and offering longer tenor financing, setting it apart from institutional capital providers. The company’s expertise in managing risks during the initial period and tailoring financing packages to client needs has been crucial to its success.
Looking ahead, Clifford Capital aims to expand its debt financing solutions by leveraging its established distribution strategy for infrastructure credit. The company’s end-to-end origination and distribution model, combined with its securitisation business, has enabled rapid capital raising and funding of higher credit volumes, addressing the green infrastructure financing gap in the Asia Pacific region.
In conclusion, Clifford Capital’s commitment to sustainability, analytical rigour, and innovative debt financing solutions positions the company as a significant player in reshaping the infrastructure debt financing landscape and addressing the funding gap in the industry.