New investment vehicle will lend to small and medium-sized businesses in Ireland, many of which have struggled to raise finance since the financial crisis
Appointment underscores BNY Mellon's role as key participant in Ireland's financial markets
DUBLIN, July 10, 2013 — BNY Mellon, the global leader in investment management and investment services, has been appointed portfolio administrator, trustee and custodian to BlueBay Ireland Corporate Credit I Limited, an investment vehicle intended to lend to Irish small and medium-sized enterprises (SMEs) and medium-sized corporates.
BNY Mellon will provide a one-stop administration solution to BlueBay and will act as drawdown notification agent, account bank, cash manager and issuance paying agent to the investment vehicle. In addition, BNY Mellon may act as facility loan agent for the borrowers in the project.
The investment vehicle was announced in January this year and forms part of a wider SME funding initiative referenced by Irish Minister for Finance Michael Noonan in the December 2012 budget. The investment vehicle, in which Ireland's National Pensions Reserve Fund (NPRF) is a cornerstone investor, was launched in June this year and has capital commitments of €450 million.
"By funding SMEs we are stepping into an area which has traditionally been dominated by Ireland's banks," said Pat Walsh, Head of Irish Investments at BlueBay Asset Management LLP. "This vehicle will originate term loans to Irish companies and is also able to acquire existing loans from banks that may be seeking to exit the Irish market. We are delighted to have worked with the NPRF and BNY Mellon on such an innovative and important project".
"SMEs are the backbone of Ireland's economy and vital to the country's nascent recovery," observes Dean Fletcher, Head of EMEA Corporate Trust, BNY Mellon. "BlueBay's innovative and ground breaking investment vehicle offers a crucial lifeline to these businesses, many of which have struggled to raise finance since the financial crisis. This is positive news for Ireland's business community and the future health of the country's economy."
Joe Duffy, Country Executive for Ireland at BNY Mellon, adds: "BNY Mellon is a major participant in Ireland's financial services industry and has significant global expertise in investment services. We are thrilled to work with BlueBay on this project and contribute to supporting the recovery of Ireland's economy."
The portfolio will comprise loans to high quality, mid-market borrowers and the use of proceeds will include refinancing, acquisition funding and growth capital. SMEs will be able to start applying for loans from the investment vehicle immediately.
BNY Mellon is a key participant in Ireland's financial markets and opened its first office in Ireland in 1994. It currently employs 1,800 employees in Ireland located in Cork, Wexford and Dublin, and offers a broad range of services to traditional and alternative asset managers, banks, pension funds, insurance companies and corporates. In Ireland, BNY Mellon offers a range of services including asset servicing, alternative investment services, depositary receipts and corporate trust. Pershing, a subsidiary of BNY Mellon, also has a presence in Ireland.
As of March 31, 2013, BNY Mellon's Corporate Trust business serviced $12 trillion in outstanding debt from more than 60 locations worldwide. 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 utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and to develop customized 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 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 36 countries and more than 100 markets. As of March 31, 2013, BNY Mellon had $26.3 trillion in assets under custody and/or administration and $1.4 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 or follow us on Twitter @BNYMellon.
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 March 31, 2013. 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. Supervised and regulated by the New York State Department of Financial Services and the Federal Reserve. Authorised by the Prudential Regulation Authority. 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.