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BNY Mellon launches project agent role to meet institutional investor demand

BNY Mellon has launched a project agent role to meet the needs of institutional investors and other transaction participants in the European Union (EU) and European Investment Bank (EIB) Project Bond Initiative.

A core objective of the initiative is to increase the share of private sector finance in infrastructure projects and limit public debt growth.
One of the potential solutions to fill the infrastructure finance gap is the involvement of institutional investors such as asset managers, insurance companies and pension funds, according to an audit of the initiative published earlier this year.
The key attraction for this investor segment is the potential for an enhanced yield from well-rated investments, which is hard to come by in the current low interest rate environment. Bringing in more institutional investors also provides potential pricing benefits for procuring authorities by increasing the traditional pool of investors.
BNY Mellon feels that it can cater for, and stay ahead of, the evolving needs of its clients beyond the traditional corporate trust roles available to them.
Project finance is a new area for many insurance companies and pensions funds, and a project agent can support them through the process which can be a complex one, especially when you’re building a project from scratch, be it a new biomass plant, student campus, road or bridge. 

BNY Mellon’s project agent team will assist both borrowers and investors in the ongoing management of project information and facilitate guidance on key decisions that need to be made throughout the lifecycle of the project. 

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