LONDON, Nov. 22, 2016 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, has been appointed as trustee and paying agent on the largest ever bond issued by a local authority in the U.K. Aberdeen City Council's £370 million transaction is also the first capital markets instrument to be issued by a Scottish local authority. The proceeds of the issuance will be placed with the Council's Capital Fund and used to fund capital expenditure programmes on vital infrastructure projects in Aberdeen. Aberdeen City Council Leader Jennifer Laing said: "It is a remarkable achievement by this Council in securing this investment in the future of our city. Having already secured a credit rating from Moody's Investors Service at Aa2, the issue of the bond is another step forward by the Council in delivering a stable and fiscally prudent financial strategy that is both affordable and sustainable for the future - as demonstrated by investor confidence." "We are looking forward to servicing Aberdeen City Council's innovative issuance," said Tom Ahern, Head of Corporate Trust for EMEA at BNY Mellon. "This deal further establishes our leadership in trustee and agency services for the public sector which is a growth market for us. BNY Mellon has acted on two out of three U.K. local authority capital raisings and we are also paying agent on the majority of housing association bonds in the U.K." BNY Mellon will also act as calculation agent, common depository and tax administration agent throughout the life of this deal until final maturity in 2054. HSBC Bank plc acted as both the sole arranger and bookrunner on this financing. The semi-annual coupon rate on Aberdeen City Council's issuance is linked to the performance of the U.K. Retail Price Index (RPI) which includes mortgage interest payments. This is in contrast to most other inflation-linked bonds issued by local authorities and housing associations in the U.K. which are linked to the Consumer Price Index (CPI).