LONDON, Nov. 22, 2016 /PRNewswire/ -- BNY Mellon, a
global leader in investment management and investment services, has
been appointed as trustee and paying agent on the largest ever bond
issued by a local authority in the U.K.
Aberdeen City Council's £370 million transaction is also the
first capital markets instrument to be issued by a Scottish local
authority. The proceeds of the issuance will be placed with the
Council's Capital Fund and used to fund capital expenditure
programmes on vital infrastructure projects in Aberdeen.
Aberdeen City Council Leader Jennifer
Laing said: "It is a remarkable achievement by this Council
in securing this investment in the future of our city. Having
already secured a credit rating from Moody's Investors Service at
Aa2, the issue of the bond is another step forward by the Council
in delivering a stable and fiscally prudent financial strategy that
is both affordable and sustainable for the future - as demonstrated
by investor confidence."
"We are looking forward to servicing Aberdeen City Council's
innovative issuance," said Tom Ahern, Head of Corporate Trust
for EMEA at BNY Mellon. "This deal further establishes our
leadership in trustee and agency services for the public sector
which is a growth market for us. BNY Mellon has acted on two out of
three U.K. local authority capital raisings and we are also paying
agent on the majority of housing association bonds in the
U.K."
BNY Mellon will also act as calculation agent, common depository
and tax administration agent throughout the life of this deal until
final maturity in 2054. HSBC Bank plc acted as both the sole
arranger and bookrunner on this financing.
The semi-annual coupon rate on Aberdeen City Council's issuance
is linked to the performance of the U.K. Retail Price Index (RPI)
which includes mortgage interest payments. This is in contrast to
most other inflation-linked bonds issued by local authorities and
housing associations in the U.K. which are linked to the Consumer
Price Index (CPI).
Notes to editors:
BNY Mellon
BNY Mellon is the premier provider of
corporate trust services to the debt capital markets, providing
customized and market-driven solutions to investors, bondholders
and lenders. As of September 30,
2016, BNY Mellon Corporate Trust served as trustee and/or
paying agent on more than 57,000 debt-related issues globally. The
corporate trust business utilizes its global footprint and
expertise to deliver a full range of issuer and related investor
services including trustee, paying agency, fiduciary, escrow, and
other financial services. The business administers a wide array of
assets and types of programs to multinational corporations,
financial institutions, governments and their agencies, and the
banking, securities, and insurance industries.
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of September 30, 2016, BNY Mellon had $30.5 trillion in assets under custody and/or
administration, and $1.72 trillion in
assets under management. BNY Mellon can act as a single point of
contact for clients looking to create, trade, hold, manage,
service, distribute or restructure investments. BNY Mellon is the
corporate brand of The Bank of New York Mellon Corporation (NYSE:
BK). Additional information is available on www.bnymellon.com.
Follow us on Twitter @BNYMellon or visit our newsroom at
www.bnymellon.com/newsroom for the latest company news.
This press release is issued by The Bank of New
York Mellon to members of the financial press and media.
All information and figures source BNY Mellon unless otherwise
stated as at September 30, 2016.
The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818.
Branch office: One Canada Square,
London E14 5AL. The Bank of New
York Mellon is supervised and regulated by the New York State Department of Financial
Services and the Federal Reserve and authorised by the Prudential
Regulation Authority.
The Bank of New York Mellon London branch is subject to regulation
by the Financial Conduct Authority and limited regulation by the
Prudential Regulation Authority.
Details about the extent of our regulation by the Prudential
Regulation Authority are available from us on request.
Contact:
Malcolm Borthwick
BNY
Mellon
+44 (0)20 7163
4109
malcolm.borthwick@bnymellon.com
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SOURCE BNY Mellon