BNY Mellon Corporate Trust has been appointed trustee, paying agent, calculation agent, registrar and transfer agent for the first ever publicly distributed standalone UK Residential Mortgage Backed Security ("RMBS") with a Kangaroo tranche sponsored by Lloyds Bank Corporate Markets.
A Kangaroo tranche is a bond that is issued in Australian dollars by foreign entities wanting to expand their investor base.
The deal comprises three tranches consisting of 638million pounds Sterling of Sterling notes, euro 500million of euro notes and A$275million in Australian dollar notes.
In its role, BNY Mellon Corporate Trust will provide a variety of services for the debt issue, including processing principal and interest payments and maintaining bondholder records. Lloyds Bank Corporate Markets structured the transaction. Lloyds Bank Corporate Markets was lead manager for the Sterling notes, Lloyds Bank Corporate Markets and Natixis for the Euro notes and Lloyds Bank Corporate Markets, Australia branch, National Australia Bank and Macquarie Bank for the AUD notes.
"The Australian bond market has seen increased interest over the past 12 months from overseas issuers looking to capitalise on strong investor appetite, favourable cross currency swap rates and the diversification benefits of issuing in AUD," said James Maitland, head of the International region for BNY Mellon Corporate Trust. "Lloyds Banking Group chose BNY Mellon due to our cross-continental capabilities, extensive experience and expertise in the debt capital markets globally, and ability to offer clients comprehensive solutions that meet our clients specific requirements" added Maitland.
