New Special Purpose Vehicle for Australian Structured Finance

New Special Purpose Vehicle for Australian Structured Finance

July 2020

 

The Australian Office of Financial Management (AOFM), the agency tasked with managing the Australian Government’s borrowing and cash management needs, is poised to support a Forbearance Special Purpose Vehicle (FSPV) to help stabilise and reinforce Australia’s structured finance market. COVID-19 hardship has placed stress on securitisations. This FSPV represents one aspect of the Government’s AUS15 billion support programme, known as the Structured Finance Support Fund, announced in March 2020. The FSPV will provide support to the non-bank lending market by allowing wholesale lenders to borrow accrued but unpaid interest on a range of loans impacted by COVID-19 related financial stress and funded through asset-backed securitisation trusts. It is expected that more than 20 non-bank originators will utilise the vehicle.

 

BNY Mellon Corporate Trust Australia has been mandated as Trustee/Security Trustee and Trust Manager for the FSPV.

 

“We take great pride that the Australian Government has entrusted us with these key roles in supporting the securitisation market during these difficult times,” said Rob Wagstaff, Head of Market for Australia. “Industry leaders, including the Australian Securitisation Forum (ASF), have rallied to provide relief for structured finance. We are pleased to be included in bringing our expertise to the table.”

 

Outsourcing the trust management function delivers expertise, focus, and scale to issuers. BNY Mellon offers a world-class technology platform for trust management. It works across different trusts and warehouses, helps with associated documentation, supports administrative tasks, and provides modelling tools for investors.

 

The BNY Mellon solution has been tested on more than 1,000 transactions to ensure it best supports the day-to-day management of trusts and their associated reporting.

For more information about our trust manager platform, read “Trusted Partners: The Benefits of Outsourcing the Trust Manager Role.” Visit our Corporate Trust page to learn more about our service offerings for Australian issuers.


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