CIBC Mellon has been appointed custodian in the $32 billion restructuring of the non-Canadian, non-bank sponsored asset-backed commercial paper (ABCP) market, the company said Thursday.
“CIBC Mellon is uniquely positioned in the Canadian market to manage this important and complex ABCP restructuring,” says Thomas MacMillan, president and CEO. “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 Purdy Crawford chaired Pan-Canadian Investors’ Committee in late January.
CIBC Mellon is 50-50 jointly owned by CIBC and The Bank of New York Mellon Corp.
CIBC Mellon named custodian for $32 billion ABCP restructuring
- By: IE Staff
- February 12, 2009 February 12, 2009
- 12:45