CIBC Mellon appointed as custodian in the $32 billion restructuring of the non-Canadian, non-bank sponsored asset-backed commercial paper (ABCP) market.
“CIBC Mellon is uniquely positioned in the Canadian market to manage this important and complex ABCP restructuring,” says Thomas C. MacMillan, president and chief executive officer at CIBC Mellon. “We worked closely with the Pan-Canadian Investors’ Committee throughout the restructuring to ensure that we could provide solutions that benefitted all participating parties in this highly challenging transition.”
During the initial phase of restructuring, CIBC Mellon provided depositary services to facilitate the exchange of short-term ABCP for new long-term notes as called for under the plan. In its role as custodian, CIBC Mellon is responsible for the custody of asset pools held by the newly created trusts, including Master Asset Vehicles (MAV) I, II and III. CIBC Mellon will ensure the safekeeping of securities, and will facilitate accurate trade settlement and timely collection of entitlements, which will contribute to the protection of capital and reduction of risk to affected investors.
The complex restructuring, which involves issuing new long-term notes to investors in exchange for their short-term paper, was developed by a group of major banks and investors with the support of the Canadian federal government. The restructuring plan was fully implemented by the Pan-Canadian Investors’ Committee in late January.
CIBC Mellon is 50-50 jointly owned by Canadian Imperial Bank of Commerce and The Bank of New York Mellon Corporation. CIBC Mellon is a leading provider of financial services for institutions and corporations, providing superior asset servicing, multicurrency accounting, information delivery, securities lending and foreign exchange services in Canada. CIBC Mellon is part of BNY Mellon Asset Servicing, which has more than US$20 trillion in assets under custody and administration and more than $928 billion in assets under management. CIBC Mellon provides services through CIBC Mellon Global Securities Services Company and its sister company CIBC Mellon Trust Company.
D.C.