BNY Mellon has been appointed collateral agent, insurance trustee and financial model custodian by the Rideau Transit Group (RTG) for its CAD$2.1 billion transit contract. Rideau Transit Group will use the lender's proceeds to finance the construction of the Confederation Line, a light rail project that will run through the city of Ottawa, Canada.

The Rideau Transit Group and the City of Ottawa have entered into a public-private partnership (P3) in which RTG will design, build, finance and maintain the Confederation Line light rapid transit system. RTG is a consortium comprising ACS Infrastructure Canada Inc., SNC Lavalin Capital and EllisDon Inc.

"The Confederation Line is the largest transportation infrastructure project in Ottawa's history, and we are pleased to be working with BNY Mellon. 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," said Antonio Estrada, CEO of Rideau Transit Group.

"Transit P3s are one of the leading types of ventures within project finance," said Dan Gosselin, CEO of BNY Trust Company of Canada. "We are committed to being a key participant in valuable public-private partnerships in Canada and are well positioned to support the Rideau Transit Group as they finance a project that will strengthen the transportation infrastructure of Ottawa, Canada's capital city."

Source: BNY Mellon