BNY Mellon Corporate Trust has announced its appointment by Kabel BW, to provide corporate trust services for its 2.3 bn high yield bond, one of the biggest deals of its type since the start of 2011.
BNY Mellon will provide trustee, paying agent, registrar, transfer agency and Luxembourg listing services to Kabel BW which is a leading provider of triple-play services (TV, Internet, Telephony) in the southwest of Germany.
The European high-yield bond market is set to reach a new level of growth this year, as Basel III regulations make banks focus on capital requirements,” says James Maitland, international Corporate Trust executive at BNY Mellon. “This coupled with underlying low interest rates are the cause of the rise of high-yield issuance as investors have moved into higher-returning assets. Our appointment on this issuance underscores our expertise in this market sector.
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 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.
BNY Mellon has $25.5 trillion in assets under custody and administration and $1.2 trillion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day.
(LB)