BAM Mutual, a bond insurer specialising in lowering the cost of debt for essential infrastructure projects, is expanding by opening an office in Melbourne.

The company will now provide insurance for bonds and loans used to finance projects across Australia and New Zealand.

Their priorities will encompass electricity transmission and distribution systems that aid the energy transition, as well as social infrastructure and transportation networks.

“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,” added 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.”

This marks BAM’s first move beyond the US, supported by the industry’s most experienced team. The team has an established history of assessing the credit and legal frameworks of transactions, with particular expertise in Australia and New Zealand.

“Australia and New Zealand are markets where BAM insurance can have a meaningful impact for borrowers while we maintain the same credit appetite we’ve applied in building our US portfolio,” commented Chief Credit Officer Suzanne Finnegan.

The new Melbourne office will be headed by Andrew Bevan, an Australian-born 25-year capital markets expert with 25 years of experience. Over his career, he has played a key role in financing over $10 billion in essential infrastructure across 25 transactions in Australia and New Zealand, including projects like the Melbourne Convention Centre and Brisbane Airport.

In his role, Bevan will focus on identifying opportunities for BAM to insure both new and existing debt issued to fund projects such as electric power facilities, airports, toll roads, and social infrastructure public-private partnerships (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,” 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.”