BNY Mellon has been granted full all asset trust license status in Korea to provide trustee services for the domestic market, expanding its international services to Korean clients.
The license complements BNY Mellon’s existing money trust license, growing its trustee services capabilities from money receivables trusts to intangible property rights.
The new license allows BNY Mellon to offer a comprehensive suite of domestic issuer and related investor services that are market-driven and customised, including the ability to offer alternative investment options on cash balances in asset backed securitisation (ABS) structures.
“Asset backed securitisation structures are attractive to investors from a diversification standpoint, whether within the domestic market or for foreign investors investing into Asia,” said Gary Lew, BNY Mellon’s Asia Pacific head of corporate trust.
“The broadening of our trustee services to offer a comprehensive suite of solutions further supports our commitment to the steadily developing Korean ABS market.”
BNY Mellon established its Seoul branch office in 1988 and was the trustee for Korea’s first covered bond issuance in 2015 under the Covered Bond Act in Korea.
“Korean issuers are using ABS structures not only as a lower cost tool to restructure maturing debt and secure liquidity, but also as an essential balance sheet tool that Korean lenders can use to convert loans to long term, fixed rate plans,” said Lew.