November 22, 2016

BNY Mellon Appointed Trustee and Paying Agent on Largest Ever Local Authority Bond in U.K.

Aberdeen City Council bond first to be issued by Scottish local authority


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.

SOURCE BNY Mellon