Landmark Starwood project finance CLO opens door to new asset class

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By Paola Aurisicchio
04 Mar 2021

MUFG has introduced a new CLO asset class, bundling $500m of project finance and infrastructure loans together for Starwood Property Trust, in a deal that clearly demonstrated investor appetite for the product. Other issuers could follow, raising capital for the forthcoming US infrastructure building plan potentially worth $2tr, writes Paola Aurisicchio.

In 2017, Deutsche Asset Management subsidiary Rreef America worked on an early project finance CLO dubbed RIN. The CLO was still a "hybrid", according to people familiar with the deal, because it was backed by project finance loans and leveraged loans. But since then, moves towards a pure ...

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