Bayfront’s primary business activity involves the acquisition of project and infrastructure loans from banks, with the objective of distributing these loan exposures to institutional investors through securitisations or other forms of issuances. As such, Bayfront predominantly acquires loans financing projects that are fully operational or are close to completion.
Bayfront purchases loans mostly from financial institutions that have adopted the Equator Principles and by the nature of such secondary purchases, these loans and the associated projects have already been subject to environmental and social due diligence conducted by the original lenders and their appointed E&S consultant(s) prior to financial close, along with ongoing monitoring of their E&S performance up to the point of acquisition by Bayfront.
Nonetheless, prior to any acquisition or commitment, all loans are thoroughly screened for compliance with our E&S Framework.
E&S Framework Objectives
Assess expected E&S impacts of projects financed by loans acquired and rate the residual E&S risks (including reputational risk)
Engage with borrower/beneficiaries and other project counterparties to manage and mitigate E&S impacts post loan acquisition
Work with external stakeholders and counterparties to continuously seek improved E&S practices
Set out responsibilities for E&S risk identification, assessment, decision making, monitoring and escalation