A New York-based investment management firm says it has joined the team building Ottawa’s $2.1 billion light-rail line.
The Bank of New York Mellon Corp. has been appointed to various financial roles for Rideau Transit Group’s Confederation Line, including collateral agent, insurance trustee and financial model custodian.
As collateral agent, BNY Mellon will hold security granted on RTG’s assets to ensure secure payments are made to the project’s lenders, according to a spokesperson for the financial firm.
The role of insurance trustee means BNY Mellon will be in charge of paying off any losses on certain insurance policies maintained by RTC. The American firm is required to manage money from any insurance claims that may arise during the project, and make payments as directed by the consortium.
As financial model custodian for the project, BNY Mellon will oversee the financial model related to the project.
The transit project is a public-private partnership between the City of Ottawa and the RTG consortium consisting of ACS Infrastructure Canada Inc., SNC-Lavalin Capital and Ellis Don Inc.
“We chose to work with BNY Mellon because of their expertise in administering a wide range of project finance roles and experience in servicing Canadian P3s,” stated RTG’s CEO Antonio Estrada in a company release.
As of March 31, BNY Mellon Corporate Trust had serviced $12 trillion in outstanding debt from more than 60 locations worldwide, according to the company.
Design and construction of the local transit project began this February and is expected to be completed in the spring of 2018.