AA-Rated Financial Guarantee Reduces Costs and Improves Certainty of Delivery for Essential Infrastructure

 

Key energy and social infrastructure could be delivered sooner, thanks to a business which guarantees project debt launching in Australia.

BAM Mutual is the only mutual bond insurer focused on reducing the cost of debt sold for essential infrastructure. BAM will soon begin insuring bonds and loans sold to finance projects in Australia and New Zealand, including electricity transmission and distribution networks that support the energy transition, social infrastructure, and transportation facilities.

“BAM Mutual’s mission is to make infrastructure more affordable, and we are looking forward to doing that for project sponsors and the users of projects across Australia and New Zealand,” said BAM CEO Seán W. McCarthy.

“BAM’s guaranty improves the economics for infrastructure investment by lowering the cost of borrowing, expanding the investor base and creating greater market liquidity, and giving buyers more certainty that they will be repaid on a timely basis, without exception.”

The initiative is BAM’s first expansion outside the United States and is backed by the most experienced team in the industry. 

The insurer’s new Melbourne office will be led by Andrew Bevan, an Australian native and 25-year capital-markets veteran who has helped finance more than $10 billion of essential infrastructure in 25 transactions across Australia and New Zealand, including the Melbourne Convention Centre and Brisbane Airport. 

Mr. Bevan will identify opportunities for BAM to insure new and existing debt sold to finance projects including electric power facilities, airports, toll roads, and social infrastructure PPPs.

“The region’s infrastructure needs more than $200 billion of investment over the next five years to support sustainable development and a strong economy,” Mr. Bevan said. 

“BAM Mutual’s guaranty has a strong track record of helping attract investors to finance essential projects, improving market access and lowering costs. I’m proud to be bringing these tools to Australia and New Zealand.”

About BAM Mutual

BAM is a mutual bond insurance company operated for the benefit of its members – the sponsors of essential infrastructure projects like roads, airports, and schools, as well as water, wastewater, and power utilities. Through June 30, 2024, BAM has insured more than USD$150 billion of long-term securities for more than 6,000 bond issuers.