The Bank of New York Selected by Riyad Bank, Saudi Arabia for Tri-Party Collateral Management
NEW YORK, May 1, 2007 -- The Bank of New York, a global leader in securities servicing, was selected by Riyad Bank, Saudi Arabia to conduct one of the first ever tri-party repo transactions in the Middle-East. The transaction, in which Riyad Bank provided a diverse pool of international fixed income securities, is expected to be the springboard for an active collateral management program going forward.
Abdulaziz Al-Malki, executive vice president of treasury and investment for Riyad Bank commented, "Riyad Bank is one of the largest financial institutions in Saudi Arabia, with a strong and growing corporate and retail franchise. This arrangement will allow Riyad Bank to take advantage of its international fixed income portfolio by tapping into new funding source at a competitive cost. We selected The Bank of New York because it is the world's leading tri-party repo provider with the expertise and capacity to meet our requirements both now and in the future. Our insistence on matching our proprietary investment requirements and also our customers' often-unique needs, meant that the brief was quite complex. However, The Bank of New York consistently demonstrated that it could match our requirements and expectations in this arena."
Art Certosimo, executive vice president and head of broker dealer services at The Bank of New York, said, "This transaction reinforces our global leadership in tri-party collateral management, our expanding geographic reach and our unique ability to assist the most important players in financial markets anywhere in the world. We have experienced an explosion in demand for collateral management services in Europe and Asia, and we applaud Riyad Bank for being at the forefront of this trend in the Middle-East."
Certosimo noted the transaction, which is the culmination of months of extensive work by the teams at both banks, highlights the value of combining a strong and disciplined relationship management approach with industry leading products and services.
In a tri-party collateral management transaction, the Bank acts as an intermediary between a buyer and seller, or lender and borrower of securities to ensure proper collateralization throughout the term of the transaction. The Bank, which services more than $1.3 trillion in tri-party balances worldwide, maintains cash and securities accounts for both parties, verifies collateral eligibility, marks to market securities pledged as collateral, processes income and provides daily reporting to both parties.
The Bank of New York has been conducting business in the Middle East and Africa for nearly 100 years. The Company has representative offices in Abu Dhabi, Beirut, Cairo, Istanbul, and Johannesburg, and works with a wide range of banks, governments, and other financial institutions throughout the region.
The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, asset management, and wealth management. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.
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