BNY Mellon Corporate Trust has launched an enhanced Spanish tax certification service that will allow Spanish issuers and guarantors to continue entering debt and preferred securities markets whilst providing to eligible investors an enhanced position for tax on income payments.
Working closely with strategic partners GlobeTax and The Depository Trust Company (DTC), BNY Mellon has created a new solution that uses GlobeTax’s ESP technology and DTC’s TaxRelief Service to support the Spanish issuing community and its investor base.
Since the introduction of Spanish law 19 of 2003, Spanish issuers have been subject to significant reporting obligations on their debt and preferred securities issuances. This regulation has made an impact on the number of Spanish Yankee deals that have come to market in recent years. As a result, BNY Mellon Corporate Trust developed its Tax Certification Agent services to provide an alternative to issuers that have limited choice of market providers.
Scott Posner, CEO of BNY Mellon Corporate Trust, said: “Our innovative tax certification solution addresses a major obstacle for issuers in Spain and we are hopeful it will help pave the way for a meaningful rise in Spanish debt issuances in the future. We are the first corporate trust service provider to offer an alternative to access the US debt capital markets.”