Ms Gillian Tan, Executive Director, MAS, shared about the Insurance-linked securities (ILS) landscape globally and in Asia, and discussed Singapore’s role in supporting the growth of ILS in Asia.
Demand for infrastructure financing in Asia is growing faster than countries' funding capacity. Going forward, infrastructure development has to look to private capital to remain sustainable.
- Uncertain legal and regulatory frameworks.
- The different risk profiles of funds.
- Inequitable risk allocation.
- Stretched valuations due to increased competition.
- Limited exit options.
In Singapore, the financial ecosystem is working with multilateral development banks to improve the bankability of Asian infrastructure projects. The strategy is to crowd in private capital through innovative market mechanisms and infrastructure investment benchmarks.
Singapore also set up Infrastructure Asia in April 2018, a platform to connect local and international stakeholders across the value chain for joint projects. Singapore Statutory Boards and Government-owned companies are also exploring opportunities to issue bonds to finance infrastructure building.
- Infrastructure Debt Distribution Facility
MAS is working with industry partners to securitise a pool of brownfield regional project finance loans from banks into a collateralised loan obligation that institutions can invest in.
The took place on 25 July 2018. Bayfront Infrastructure Capital Pte. Ltd., which is sponsored by Clifford Capital Pte. Ltd.,offered three classes of investment grade rated notes (Class A, B and C Notes) to institutional investors. The notes will also be listed on SGX-ST.
- Infrastructure Asia
brings together local and international partners, including developers, institutional investors, multilaterals, and legal and financial services providers, to meet Asia’s growing demand for infrastructure. As the definitive Asian 'marketplace', it matches the unique requirements of foreign firms and governments with the expertise of Singapore players.
Developing a full service infrastructure financing hub to cater to Asia’s growing infrastructure needs.
Mr Heng Swee Keat, Deputy Prime Minister, Minister for Finance and MAS’ Board Member, said Singapore seeks to contribute to Asia’s sustainable growth by serving as a key node for channelling financing to the region.
Ms Indranee Rajah, Minister in the Prime Minister’s Office, Second Minister for Finance and Education, spoke on how Singapore is positioning itself for the future, such as leveraging Asian growth, innovation, helping people to reskill and upskill, financing infrastructure development, and supporting sustainability and green financing.
Keynote speech by Mr Heng Swee Keat, Minister for Finance, and MAS’ Board Member, at the 8th World Bank-Singapore Infrastructure Finance Summit