NEW YORK, Nov. 17, 2015 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, has been appointed trustee, paying agent and bond registrar for approximately $18.5 million in green bonds by the Vermont Educational and Health Buildings Financing Agency (VEHBFA) and Saint Michael's College. The bonds, the first green bonds issued by a Vermont higher education institution, will finance the construction of a three-story 188-bed residence hall for students at the college, which is located near Burlington, VT.
The bonds, which will be backed by tuition and other student fees, have been designated green bonds because the new residence hall is being designed to utilize less energy. The new residence hall will replace older dorms which are more expensive to maintain and located further from the main campus. The new hall also will incorporate sustainable building practices.
"BNY Mellon has provided excellent support on our previous bond issues and has a strong track record in supporting green bond issues," said Neal Robinson, vice president for finance of Saint Michael's College. "Green bonds are attractive to investors seeking to support projects designed to limit the impact of climate change, while obtaining competitive returns. Promoting environmental sustainability is an important goal of Saint Michael's College."
"Green bonds continue to gain momentum as issuers and investors see their importance in confronting climate change," said Antonio Portuondo, head of BNY Mellon Corporate Trust's public and not-for-profit business." In addition to appealing to retail investors seeking more sustainable investments in their portfolios, green bonds benefit institutional investors addressing environment, social and governance mandates (ESG) mandates. This had been a challenge for fixed income investors prior to the emergence of green bonds."
Among the technologically advanced aspects of the Saint Michael's project is the construction of 30 geothermal wells that will be dug to a depth of 500 feet that will heat, cool and provide water to the residence hall. It will use one boiler, which will be used to provide backup energy. This compares to a conventionally designed structure that would utilize four fossil-fuel burning boilers, creating a much larger carbon footprint.
BNY Mellon offers a wide range of social finance products and services that help mainstream investors meet their return/risk goals, while considering the environmental, social and governance (ESG) impact of their investments. BNY Mellon's Corporate Trust group supports clients' ESG needs through environmental finance products including custody of carbon credits, environmental trusts and escrows, green bonds and project finance. Learn more about social finance at BNY Mellon at www.bnymellon.com/socialfinance.
BNY Mellon is a leading provider of corporate trust services to the debt capital markets, offering customized and market-driven solutions to investors, bondholders and lenders. As of September 30, 2015, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 60,000 debt-related issues globally. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services including trustee, paying agency, fiduciary, escrow, and other financial services. The business administers a wide array of assets and types of programs to multinational corporations, financial institutions, governments and their agencies, and the banking, securities, and insurance industries.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Sept. 30, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
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SOURCE BNY Mellon