LONDON, August 8, 2011 — BNY Mellon has been appointed by the Bank of Cyprus Plc as corporate trustee, account bank, principal paying agent and listing agent for its EUR 5 billion covered bond programme. This is the Bank of Cyprus' inaugural covered bond programme comprising of distinct Cypriot and Greek residential mortgage loan cover pools.
Covered bond issuance across the Eurozone has seen growth of 10% and 14% in 2009 and 2010 respectively*. This trend is likely to continue since covered bonds can count towards level II assets in new liquidity benchmarking tests for financial institutions under Basel III provisions, while securitisations remain excluded.
James Maitland, international Corporate Trust executive at BNY Mellon said: "BNY Mellon has substantial covered bond experience in the UK, Italy, Greece, Ireland, the Netherlands and Canada and is working on new issuance in existing markets and new countries that are developing legislation for these instruments. Our appointment to both covered bond programmes to have been issued under Cypriot Covered Bond Law is testament to our commitment and expertise in this field."
BNY Mellon Corporate Trust services $11.9 trillion in outstanding debt from 61 locations in 20 countries. Its clients include governments and their agencies, multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilises its global footprint and expertise to deliver a full range of issuer and related investor services and to develop customised and market-driven solutions. Its range of core services includes debt trustee, paying agency, escrow and other fiduciary offerings.
Corporate trust providers are appointed by corporations, municipal governments and other entities issuing debt to perform a variety of duties, including servicing and maintaining the debt issue, processing principal and interest payments for investors, representing investors in defaults, and providing value-added services for complex debt structures.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $26.3 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at www.bnymellon.com and through Twitter @bnymellon.
*(source: Fitch Ratings)
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 The Bank of New York Mellon as at 30 June 2011 unless otherwise stated. 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 Authorised and regulated in the UK by the Financial Services Authority.