BNY Mellon, a global leader in investment management and investment services, has been appointed indenture trustee, reinsurance trustee, registrar and paying agent for the $450 million Kilimanjaro catastrophe (CAT) bond transaction sponsored by Everest Re.
Kilimanjaro Re Limited is a Bermuda-based special purpose reinsurer. Kilimanjaro Re will provide Everest Re with a four-year source of fully collateralized retrocessional reinsurance protection through the issuance of two tranches of CAT bond notes.
"So far this year, we've seen a substantial increase in the issuance of CAT bonds and insurance-linked securities. Given our deep experience in administering CAT bonds, we are well positioned to support issuers and sponsors like Everest Re as the market continues to expand," said Alex Tsarnas, head of U.S. corporate and insurance market segments at BNY Mellon Corporate Trust.
As of March 31, 2014, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 65,000 debt-related issues globally. Its clients include governments and their agencies, multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and to develop customized and market-driven solutions. Its range of core services includes debt trustee, paying agency, escrow and other fiduciary offerings.
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.