Build America Mutual is resurrecting bond insurance in the Australia and New Zealand debt capital markets, seeking to build on the foundations of its founders’ previous entity, FSA.
BAM have hired industry veteran Andrew Bevan to launch its expansion into Australia.
Australia and New Zealand will be the first offshore territories targeted by BAM, established in 2012.
BAM will insure, or “wrap”, the bonds of lower-rated issuers, making use of its own AA ratings.
“FSA was doing AAA-rated business in Australia and New Zealand in the mid 2000s’ Bevan explains.
“The FSA founders set up BAM as a new business more than 10 years ago, so it’s not a new business in terms of experience.
“It’s a different business, but the same experience and same founders.”
Bevan points out that via their FSA days “the company and the management have a long history in Australia and New Zealand; the credit landscape here and the industry here.”
“The regulations [in the US] allows for the kind of infrastructure we are targeting [such as] the renewal of the energy infrastructure, which is going gangbusters. And airports and tollroads and social infrastructure.
“We bring another layer of funding, funding efficiency and tenor into these deals.
‘We have a huge capacity and balance sheet to support Australian utilities.
“We do have a great history here” Bevan said.
BAM is rated AA by S&P Global Ratings.