Build America Mutual is opening an office in Melbourne as it expands into the Australian and New Zealand markets.

The mutual bond insurer says it will begin covering bonds and loans sold to finance infrastructure projects. Its focus will include electricity transmission and distribution networks that support the energy transition, social infrastructure and transport facilities.

“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,” CEO Sean W McCarthy said.

The Melbourne office will be led by Andrew Bevan, who is head of Australia and New Zealand.

“The region’s infrastructure needs more than $US200 billion ($293 billion) of investment over the next five years to support sustainable development and a strong economy,” Mr 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.”