UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number |
811-22784 |
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BNY Mellon Municipal Bond Infrastructure Fund, Inc. |
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(Exact name of Registrant as specified in charter) |
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c/o BNY Mellon Investment Adviser, Inc.
240 Greenwich Street
New York, New York 10286 |
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(Address of principal executive offices) (Zip code) |
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Deirdre Cunnane, Esq.
240 Greenwich Street
New York, New York 10286 |
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(Name and address of agent for service) |
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Registrant's telephone number, including area code: |
(212) 922-6400 |
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Date of fiscal year end:
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02/28 |
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Date of reporting period: |
08/31/2023
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FORM N-CSR
| Item 1. | Reports to Stockholders. |
BNY Mellon Municipal Bond Infrastructure Fund, Inc.
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SEMI-ANNUAL REPORT August
31, 2023 |
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![](https://www.sec.gov/Archives/edgar/data/1565381/000156538123000012/img_0b7ea77299354.jpg)
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BNY Mellon Municipal Bond Infrastructure
Fund, Inc. Protecting
Your Privacy Our Pledge to You THE FUND IS COMMITTED TO YOUR PRIVACY.
On this page, you will find the fund’s policies and practices for collecting, disclosing, and safeguarding
“nonpublic personal information,” which may include financial or other customer information. These
policies apply to individuals who purchase fund shares for personal, family, or household purposes, or
have done so in the past. This notification replaces all previous statements of the fund’s consumer
privacy policy, and may be amended at any time. We’ll keep you informed of changes as required by law. YOUR ACCOUNT IS PROVIDED IN A SECURE ENVIRONMENT. The fund maintains
physical, electronic and procedural safeguards that comply with federal regulations to guard nonpublic
personal information. The fund’s agents and service providers have limited access to customer information
based on their role in servicing your account. THE FUND COLLECTS INFORMATION
IN ORDER TO SERVICE AND ADMINISTER YOUR ACCOUNT. The fund collects a variety of nonpublic
personal information, which may include: • Information
we receive from you, such as your name, address, and social security number. • Information about your transactions with us, such as the purchase
or sale of fund shares. • Information
we receive from agents and service providers, such as proxy voting information. THE
FUND DOES NOT SHARE NONPUBLIC PERSONAL INFORMATION WITH ANYONE, EXCEPT AS PERMITTED BY LAW. Thank you for this opportunity
to serve you. |
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The views expressed
in this report reflect those of the portfolio manager(s) only through the end of the period covered and
do not necessarily represent the views of BNY Mellon Investment Adviser, Inc. or any other person in
the BNY Mellon Investment Adviser, Inc. organization. Any such views are subject to change at any time
based upon market or other conditions and BNY Mellon Investment Adviser, Inc. disclaims any responsibility
to update such views. These views may not be relied on as investment advice and, because investment decisions
for a fund in the BNY Mellon Family of Funds are based on numerous factors, may not be relied on as an
indication of trading intent on behalf of any fund in the BNY Mellon Family of Funds. |
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Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value |
Contents
THE FUND
FOR MORE INFORMATION
Back Cover
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Save time. Save paper. View your next shareholder report online as soon as it’s
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DISCUSSION
OF FUND PERFORMANCE (Unaudited)
For the period from March 1, 2023, through August 31, 2023,
as provided by Daniel Rabasco, Jeffrey Burger and Thomas Casey, portfolio managers with Insight North
America LLC, the fund’s sub-adviser.
Market and Fund Performance Overview
For the six-month period
ended August 31, 2023, BNY Mellon Municipal Bond Infrastructure Fund, Inc. (the “fund”) achieved
a total return of .51% on a net-asset-value basis and −1.61% on a market price basis.1
Over the same period, the fund provided aggregate income dividends of $.24 per share, which reflects
an annualized distribution rate of 4.55%.2 In comparison, the Bloomberg U.S. Municipal
Bond Index (the “Index”), the fund’s benchmark, posted a total return of 1.04% for the same period.3
Municipal bonds gained ground as investors began to anticipate the end of the
Federal Reserve’s (the “Fed”) interest-rate-hiking program. The fund continued to produce competitive
levels of current income through an emphasis on longer-term and revenue bonds.
The Fund’s Investment
Approach
The fund seeks to provide as high a level of current income exempt from regular
federal income tax as is consistent with the preservation of capital. The fund’s portfolio is composed
principally of investments that finance the development, support or improvement of America’s infrastructure.
Under
normal circumstances, the fund pursues its investment objective by investing at least 80% of its Managed
Assets4 in municipal bonds issued to finance infrastructure sectors
and projects in the United States. Also, under normal circumstances, the fund will invest at least 50%
of its Managed Assets in municipal bonds that, at the time of investment, are rated investment grade,
meaning that up to 50% of Managed Assets can be invested in below-investment-grade municipal bonds. Projects
in which the fund may invest include (but are not limited to) those in the transportation, energy and
utilities, social infrastructure, and water and environmental sectors. We focus on identifying undervalued
sectors and securities and minimize the use of interest-rate forecasting. We select municipal bonds using
fundamental credit analysis to estimate the relative value and attractiveness of various sectors and
securities and to exploit pricing inefficiencies.
The fund employs leverage
by issuing preferred stock and participating in tender-option bond programs. The use of leverage can
magnify gain-and-loss potential depending on market conditions.
Easing Inflation Supports Markets
The
Fed continued to make progress in reducing inflation during the reporting period, raising the federal
funds rates three times between March 2023 and August 2023. By the end of the period, the federal funds
target rate was 5.25%–5.50%, up from 4.50%–4.75% at the start of the period.
Despite
the higher rates, the U.S. economy surprised investors by continuing to avoid a long-anticipated recession.
The economy posted respectable gains in the third and fourth
2
quarters of 2022, and growth continued in the first quarter of 2023, with the
economy expanding by 2.0% followed by 2.1% in the second quarter.
As a result of higher-than-expected
inflation early in the year, municipal bond mutual funds experienced significant outflows through much
of the reporting period. The need for fund managers to meet redemptions only added to the downward momentum.
But the market began to rebound as inflation expectations shifted down, and as
economic indicators suggested a slowing economy was on the horizon. Investors also began to anticipate
the end to the Fed’s rate-hiking cycle. For a time, the stalemate in Congress over the federal debt
ceiling also gave investors pause as the outcome appeared uncertain. Nevertheless, the normal seasonal
decline in supply, combined with the seasonal reinvestment of maturing bonds, buoyed the market.
Mutual fund investors, however, have so far been reluctant to return to the market.
It appears investors are wary of continued rate volatility as the Federal Reserve remains committed to
lower inflation to its 2% target. Direct retail investors though continued to invest in municipal bonds,
attracted by higher tax-exempt yields.
The impact of weak mutual fund demand
has been offset in part by relatively manageable issuance. The need to issue new debt has been minimized
somewhat by federal assistance offered in response to the pandemic. In addition, since municipal issuers
use debt to fund capital projects, not operations, they have greater discretion about when they issue
new debt, and high interest rates have made issuance less attractive. Finally, refundings have dropped
off because the Tax Cuts and Jobs Act of 2017 eliminated advance refunding, and today’s high interest
rates make refunding less attractive.
In this environment, lower-quality credits
have performed well, driven by excess yield and spread compression.
Duration and Select Revenue Bonds Sectors Drove
Performance
The fund’s performance was driven mainly by duration and
asset allocation decisions. Specifically, the longer duration, the fund’s use of leverage and its holdings
of longer bonds were detrimental as interest rates rose. In the revenue bond sector, positions in the
special tax segment negatively impacted fund returns. Rising interest rates also raised the cost of the
fund’s leverage, which was a drag on income generation.
On a more positive
note, the fund’s performance was aided by its positioning in some segments. Positions in airport, hospital
and education bonds, especially charter schools, were especially beneficial. Allocations to prepaid gas,
tobacco and transportation also boosted returns. State general obligation bonds contributed positively
to returns, especially those issued by Illinois and Puerto Rico.
A Positive Outlook
We
believe the Fed is approaching the end of its rate-hiking program, though an additional hike in the short-term
rate cannot be discounted and rates may stay high for longer than previously expected. This may provide
an opportunity in longer-duration bonds as the end of the Fed’s rate-hiking approaches.
3
DISCUSSION
OF FUND PERFORMANCE (Unaudited) (continued)
Also, the municipal bond market’s credit fundamentals remain strong, and the
market has made valuations attractive. Additionally, technical factors, such as seasonal reinvestment
may provide support to the market in the coming months. That is, while supply has been relatively manageable,
we believe demand is likely to improve. We believe when mutual fund investors return, flows into municipal
bond mutual funds will improve, providing additional support to the market.
September
15, 2023
1 Total
return includes reinvestment of dividends and any capital gains paid, based upon net asset value per
share or market price per shares, as applicable. Past performance is no guarantee of future results.
Income may be subject to state and local taxes, and some income may be subject to the federal alternative
minimum tax for certain investors. Capital gains, if any, are fully taxable.
2 Annualized distribution rate per share is based upon dividends
per share paid from net investment income during the period, divided by the market price per share at
the end of the period, adjusted for any capital gain distributions.
3 Source: Lipper, Inc. ---The Bloomberg U.S. Municipal Bond
Index covers the U.S. dollar-denominated long-term tax-exempt bond market. Unlike a fund, the Index is
not subject to fees and other expenses. Investors cannot invest directly in any index.
4 “Managed Assets” of the fund means the fund’s total
assets, including any assets attributable to effective leverage, minus certain defined accrued liabilities.
Bonds are subject generally to interest-rate, credit, liquidity and market risks,
to varying degrees. Generally, all other factors being equal, prices of investment grade bonds are inversely
related to interest-rate changes, and rate increases can cause price declines.
High
yield bonds are subject to increased credit and liquidity risk and are considered speculative in terms
of the issuer’s perceived ability to pay interest on a timely basis and to repay principal upon maturity.
Unlike investment-grade bonds, prices of high yield bonds may fluctuate unpredictably and not necessarily
inversely with changes in interest rates.
The use of leverage may magnify the fund’s
gains or losses. For derivatives with a leveraging component, adverse changes in the value or level of
the underlying asset can result in a loss that is much greater than the original investment in the derivative.
4
STATEMENT
OF INVESTMENTS
August 31, 2023 (Unaudited)
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Description
| Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% | | | | | |
Alabama
- 3.2% | | | | | |
Alabama Special Care Facilities Financing Authority, Revenue Bonds (Methodist
Home for the Aging Obligated Group) | | 6.00 | | 6/1/2050 | | 3,820,000 | | 3,247,100 | |
Black Belt Energy Gas District, Revenue Bonds, Refunding, Ser.
D1 | | 4.00 | | 6/1/2027 | | 1,000,000 | a | 989,429 | |
Jefferson County, Revenue Bonds, Refunding, Ser. F | | 7.90 | | 10/1/2050 | | 2,500,000 | b | 2,617,379 | |
| 6,853,908 | |
Arizona - 7.0% | | | | | |
Arizona Industrial Development Authority, Revenue Bonds (Equitable
School Revolving Fund Obligated Group) Ser. A | | 4.00 | | 11/1/2050 | | 3,425,000 | | 2,922,800 | |
Arizona Industrial Development Authority, Revenue Bonds (Legacy
Cares Project) Ser. A | | 7.75 | | 7/1/2050 | | 3,200,000 | c,d | 320,000 | |
Maricopa County Industrial Development Authority, Revenue Bonds
(Benjamin Franklin Charter School Obligated Group) | | 6.00 | | 7/1/2052 | | 2,000,000 | c | 2,023,118 | |
Maricopa County Industrial Development Authority, Revenue Bonds,
Refunding (Legacy Traditional Schools Project) | | 5.00 | | 7/1/2049 | | 1,025,000 | c | 898,488 | |
Phoenix Civic Improvement Corp., Revenue Bonds | | 4.00 | | 7/1/2044 | | 1,905,000 | | 1,818,519 | |
Salt Verde Financial
Corp., Revenue Bonds | | 5.00 | | 12/1/2037 | | 5,000,000 | | 5,124,560 | |
The Phoenix Arizona
Industrial Development Authority, Revenue Bonds, Refunding (BASIS Schools Projects) Ser. A | | 5.00 | | 7/1/2046 | | 2,000,000 | c | 1,803,465 | |
| 14,910,950 | |
Arkansas - 1.7% | | | | | |
Arkansas Development
Finance Authority, Revenue Bonds (Green Bond) (U.S. Steel Corp.) | | 5.70 | | 5/1/2053 | | 3,500,000 | | 3,514,771 | |
California - 10.7% | | | | | |
California County Tobacco
Securitization Agency, Revenue Bonds, Refunding, Ser. A | | 4.00 | | 6/1/2049 | | 1,000,000 | | 907,162 | |
California Housing Finance Agency, Revenue Bonds, Ser. 2021-1 | | 3.50 | | 11/20/2035 | | 1,446,191 | | 1,330,581 | |
5
STATEMENT
OF INVESTMENTS (Unaudited) (continued)
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Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
California
- 10.7% (continued) | | | | | |
California Municipal Finance Authority, Revenue Bonds, Refunding
(HumanGood California Obligated Group) Ser. A | | 5.00 | | 10/1/2044 | | 1,000,000 | | 1,011,224 | |
California Statewide Communities Development Authority, Revenue
Bonds (California Baptist University) Ser. A | | 6.38 | | 11/1/2043 | | 2,035,000 | c | 2,039,553 | |
California Statewide Communities Development Authority, Revenue
Bonds, Refunding (California Baptist University) Ser. A | | 5.00 | | 11/1/2041 | | 1,875,000 | c | 1,826,853 | |
Golden State Tobacco Securitization Corp., Revenue Bonds, Refunding,
Ser. B | | 5.00 | | 6/1/2051 | | 1,000,000 | | 1,038,921 | |
Long Beach Bond Finance
Authority, Revenue Bonds, Ser. A | | 5.50 | | 11/15/2037 | | 5,000,000 | | 5,339,222 | |
Orange County Community Facilities District, Special Tax Bonds,
Ser. A | | 5.00 | | 8/15/2052 | | 1,000,000 | | 989,767 | |
San Diego County Regional
Airport Authority, Revenue Bonds, Ser. B | | 5.00 | | 7/1/2051 | | 3,500,000 | | 3,566,572 | |
Tender Option Bond Trust Receipts (Series 2022-XF3024), (San
Francisco City & County, Revenue Bonds, Refunding, Ser. A) Recourse, Underlying Coupon Rate (%) 5.00 | | 4.05 | | 5/1/2044 | | 4,500,000 | c,e,f | 4,621,016 | |
| 22,670,871 | |
Colorado - 9.3% | | | | | |
Colorado Health Facilities
Authority, Revenue Bonds (CommonSpirit Health Obligated Group) | | 5.25 | | 11/1/2052 | | 1,000,000 | | 1,019,609 | |
Colorado Health Facilities Authority, Revenue Bonds, Refunding
(Covenant Living Communities & Services Obligated Group) Ser. A | | 4.00 | | 12/1/2050 | | 3,000,000 | | 2,385,568 | |
Colorado Health Facilities Authority, Revenue Bonds, Refunding
(Intermountain Healthcare Obligated Group) Ser. A | | 4.00 | | 5/15/2052 | | 1,255,000 | | 1,147,940 | |
Colorado Health Facilities Authority, Revenue Bonds, Ser. A | | 5.00 | | 1/1/2024 | | 2,500,000 | g | 2,512,475 | |
Denver City & County Airport System, Revenue Bonds, Refunding,
Ser. A | | 5.50 | | 11/15/2053 | | 1,000,000 | | 1,065,214 | |
Denver City & County
Airport System, Revenue Bonds, Ser. A | | 5.25 | | 11/15/2043 | | 5,000,000 | | 5,001,582 | |
6
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Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Colorado
- 9.3% (continued) | | | | | |
Dominion Water & Sanitation District, Revenue Bonds, Refunding | | 5.88 | | 12/1/2052 | | 2,000,000 | | 1,930,033 | |
Hess Ranch Metropolitan
District No. 6, GO, Ser. A1 | | 5.00 | | 12/1/2049 | | 1,500,000 | | 1,304,465 | |
Rampart Range Metropolitan
District No. 5, Revenue Bonds | | 4.00 | | 12/1/2051 | | 1,000,000 | | 703,242 | |
Tender Option Bond
Trust Receipts (Series 2020-XM0829), (Colorado Health Facilities Authority, Revenue Bonds, Refunding
(CommonSpirit Health Obligated Group) Ser. A1) Recourse, Underlying Coupon Rate (%) 4.00 | | 2.99 | | 8/1/2044 | | 2,455,000 | c,e,f | 2,637,055 | |
| 19,707,183 | |
Connecticut - 1.7% | | | | | |
Connecticut, Revenue
Bonds, Ser. A | | 5.00 | | 5/1/2041 | | 1,000,000 | | 1,084,060 | |
Connecticut Health
& Educational Facilities Authority, Revenue Bonds (The Hartford University) Ser. P | | 5.38 | | 7/1/2052 | | 1,250,000 | | 1,127,608 | |
Connecticut Health & Educational Facilities Authority,
Revenue Bonds, Refunding (Fairfield University) Ser. T | | 4.00 | | 7/1/2055 | | 1,500,000 | | 1,288,746 | |
| 3,500,414 | |
Florida
- 5.2% | | | | | |
Florida Higher Educational Facilities Financial Authority, Revenue Bonds (Ringling
College Project) | | 5.00 | | 3/1/2049 | | 2,000,000 | | 1,888,137 | |
Hillsborough County
Port District, Revenue Bonds (Tampa Port Authority Project) Ser. B | | 5.00 | | 6/1/2046 | | 1,250,000 | | 1,255,859 | |
Lee Memorial Health System, Revenue Bonds, Refunding, Ser.
A1 | | 4.00 | | 4/1/2049 | | 1,750,000 | | 1,580,889 | |
Pinellas County Industrial
Development Authority, Revenue Bonds (Foundation for Global Understanding) | | 5.00 | | 7/1/2039 | | 1,000,000 | | 993,449 | |
Seminole County Industrial Development Authority, Revenue Bonds,
Refunding (Legacy Pointe at UCF Project) | | 5.75 | | 11/15/2054 | | 500,000 | | 390,591 | |
7
STATEMENT
OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Florida
- 5.2% (continued) | | | | | |
Tender Option Bond Trust Receipts (Series 2020-XF2877), (Greater
Orlando Aviation Authority, Revenue Bonds, Ser. A) Recourse, Underlying Coupon Rate (%) 4.00 | | 0.01 | | 10/1/2049 | | 2,480,000 | c,e,f | 2,255,953 | |
Tender Option Bond Trust Receipts (Series 2022-XF1385), (Fort
Myers FL Utility, Revenue Bonds, Refunding, Ser. A) Non-recourse, Underlying Coupon Rate (%) 4.00 | | 1.06 | | 10/1/2044 | | 1,640,000 | c,e,f | 1,561,207 | |
Village Community Development District No. 15, Special Assessment
Bonds | | 5.25 | | 5/1/2054 | | 1,000,000 | c | 1,004,933 | |
| 10,931,018 | |
Georgia - 4.5% | | | | | |
Fulton County Development Authority, Revenue Bonds, Ser. A | | 5.00 | | 4/1/2042 | | 1,250,000 | | 1,269,777 | |
Georgia Municipal Electric
Authority, Revenue Bonds (Plant Vogtle Units 3&4 Project) Ser. A | | 5.00 | | 7/1/2052 | | 2,500,000 | | 2,555,742 | |
Tender Option Bond Trust Receipts (Series 2019-XF2847), (Municipal
Electric Authority of Georgia, Revenue Bonds (Plant Vogtle Unis 3&4 Project) Ser. A) Recourse, Underlying
Coupon Rate (%) 5.00 | | 4.66 | | 1/1/2056 | | 2,060,000 | c,e,f | 2,081,792 | |
Tender Option Bond Trust Receipts (Series 2020-XM0825), (Brookhaven
Development Authority, Revenue Bonds (Children's Healthcare of Atlanta) Ser. A) Recourse, Underlying
Coupon Rate (%) 4.00 | | 1.44 | | 7/1/2044 | | 3,600,000 | c,e,f | 3,711,373 | |
| 9,618,684 | |
Hawaii - .6% | | | | | |
Hawaii Airports System, Revenue Bonds, Ser. A | | 5.00 | | 7/1/2047 | | 1,250,000 | | 1,286,098 | |
Illinois - 15.4% | | | | | |
Chicago Board of Education,
GO, Refunding, Ser. A | | 5.00 | | 12/1/2035 | | 1,500,000 | | 1,528,454 | |
Chicago II, GO, Refunding,
Ser. A | | 6.00 | | 1/1/2038 | | 2,500,000 | | 2,635,906 | |
Chicago II, GO, Ser.
A | | 5.00 | | 1/1/2044 | | 2,000,000 | | 2,020,401 | |
Chicago O'Hare International
Airport, Revenue Bonds (Customer Facility Charge) | | 5.75 | | 1/1/2043 | | 3,750,000 | | 3,754,906 | |
Chicago Transit Authority, Revenue Bonds, Refunding, Ser. A | | 5.00 | | 12/1/2057 | | 2,000,000 | | 2,025,398 | |
8
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Illinois
- 15.4% (continued) | | | | | |
Chicago Transit Authority, Revenue Bonds, Refunding, Ser. A | | 5.00 | | 12/1/2045 | | 1,000,000 | | 1,031,670 | |
Illinois, GO, Ser.
D | | 5.00 | | 11/1/2027 | | 3,500,000 | | 3,684,545 | |
Illinois, GO, Ser.
D | | 5.00 | | 11/1/2028 | | 2,600,000 | | 2,733,276 | |
Illinois, Revenue Bonds
(Auxiliary Facilities System) Ser. A | | 5.00 | | 4/1/2044 | | 2,500,000 | | 2,501,704 | |
Illinois Finance Authority, Revenue Bonds (Plymouth Place Obligated
Group) Ser. A | | 6.63 | | 5/15/2052 | | 1,000,000 | | 1,008,425 | |
Metropolitan Pier &
Exposition Authority, Revenue Bonds (McCormick Place Project) (Insured; National Public Finance Guarantee
Corp.) Ser. A | | 0.00 | | 12/15/2036 | | 1,400,000 | h | 784,613 | |
Metropolitan Pier & Exposition Authority, Revenue Bonds,
Refunding (McCormick Place Expansion Project) | | 5.00 | | 6/15/2050 | | 1,750,000 | | 1,755,329 | |
Tender Option Bond Trust Receipts (Series 2017-XM0492), (Illinois
Finance Authority, Revenue Bonds, Refunding (The University of Chicago)) Non-recourse, Underlying Coupon
Rate (%) 5.00 | | 3.14 | | 10/1/2040 | | 7,000,000 | c,e,f | 7,123,788 | |
| 32,588,415 | |
Indiana - 2.3% | | | | | |
Indiana Finance Authority, Revenue Bonds (BHI Senior Living
Obligated Group) Ser. A | | 6.00 | | 11/15/2023 | | 3,500,000 | g | 3,514,558 | |
Indiana Finance Authority, Revenue Bonds (Green Bond) | | 7.00 | | 3/1/2039 | | 1,925,000 | c | 1,435,999 | |
| 4,950,557 | |
Iowa - .6% | | | | | |
Iowa Finance Authority, Revenue Bonds, Refunding (Iowa Fertilizer
Co. Project) | | 5.00 | | 12/1/2050 | | 1,250,000 | | 1,237,057 | |
Kansas
- .1% | | | | | |
Kansas Development Finance Authority, Revenue Bonds, Ser. B | | 4.00 | | 11/15/2025 | | 150,000 | | 141,762 | |
Kentucky - 1.5% | | | | | |
Christian County, Revenue
Bonds, Refunding (Jennie Stuart Medical Center Obligated Group) | | 5.50 | | 2/1/2044 | | 1,000,000 | | 1,007,933 | |
Henderson, Revenue Bonds (Pratt Paper Project) Ser. A | | 4.70 | | 1/1/2052 | | 1,000,000 | c | 944,629 | |
9
STATEMENT
OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Kentucky
- 1.5% (continued) | | | | | |
Kentucky Public Energy Authority, Revenue Bonds, Ser. A1 | | 4.00 | | 8/1/2030 | | 1,310,000 | a | 1,287,645 | |
| 3,240,207 | |
Louisiana - .9% | | | | | |
Louisiana Public Facilities
Authority, Revenue Bonds (Impala Warehousing Project) | | 6.50 | | 7/1/2036 | | 1,000,000 | c | 1,000,003 | |
Louisiana Public Facilities Authority, Revenue Bonds, Refunding
(Tulane University) Ser. A | | 4.00 | | 4/1/2050 | | 885,000 | | 803,567 | |
Louisiana Public Facilities
Authority, Revenue Bonds, Refunding (Tulane University) Ser. A | | 4.00 | | 4/1/2030 | | 115,000 | g | 121,290 | |
| 1,924,860 | |
Maryland
- 2.0% | | | | | |
Maryland Economic Development Corp., Revenue Bonds (Green Bond) (Purple Line Transit
Partners) Ser. B | | 5.25 | | 6/30/2055 | | 1,000,000 | | 1,002,695 | |
Maryland Economic Development
Corp., Revenue Bonds (Green Bond) (Purple Line Transit Partners) Ser. B | | 5.25 | | 6/30/2052 | | 3,200,000 | | 3,213,747 | |
| 4,216,442 | |
Massachusetts
- 2.7% | | | | | |
Massachusetts Development Finance Agency, Revenue Bonds, Refunding (NewBridge
Charles Obligated Group) | | 5.00 | | 10/1/2057 | | 1,000,000 | c | 861,948 | |
Massachusetts Development Finance Agency, Revenue Bonds, Refunding
(Suffolk University Project) | | 5.00 | | 7/1/2034 | | 1,550,000 | | 1,613,717 | |
Massachusetts Development
Finance Agency, Revenue Bonds, Refunding, Ser. A | | 5.00 | | 7/1/2029 | | 900,000 | | 919,131 | |
Massachusetts Educational Financing Authority, Revenue Bonds,
Ser. B | | 5.00 | | 7/1/2030 | | 1,000,000 | | 1,054,830 | |
Massachusetts Port
Authority, Revenue Bonds, Refunding (Bosfuel Project) Ser. A | | 4.00 | | 7/1/2044 | | 1,500,000 | | 1,372,106 | |
| 5,821,732 | |
Michigan
- 5.1% | | | | | |
Detroit, GO, Ser. A | | 5.00 | | 4/1/2050 | | 1,000,000 | | 969,709 | |
Michigan Building Authority, Revenue Bonds, Refunding | | 4.00 | | 10/15/2049 | | 2,500,000 | | 2,346,071 | |
10
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Michigan
- 5.1% (continued) | | | | | |
Michigan Finance Authority, Revenue Bonds, Refunding (Insured;
National Public Finance Guarantee Corp.) Ser. D6 | | 5.00 | | 7/1/2036 | | 2,250,000 | | 2,265,052 | |
Michigan Housing Development Authority, Revenue Bonds, Ser.
A | | 3.35 | | 12/1/2034 | | 2,500,000 | | 2,347,098 | |
Michigan Tobacco Settlement
Finance Authority, Revenue Bonds, Refunding, Ser. C | | 0.00 | | 6/1/2058 | | 41,200,000 | h | 1,660,900 | |
Wayne County Airport Authority, Revenue Bonds (Detroit Metropolitan
Wayne County Airport) (Insured; Build America Mutual) Ser. B | | 5.00 | | 12/1/2039 | | 1,250,000 | | 1,259,764 | |
| 10,848,594 | |
Minnesota
- .9% | | | | | |
Duluth Economic Development Authority, Revenue Bonds, Refunding (Essentia Health
Obligated Group) Ser. A | | 5.00 | | 2/15/2058 | | 2,000,000 | | 1,993,290 | |
Missouri
- 2.6% | | | | | |
St. Louis County Industrial Development Authority, Revenue Bonds (Friendship Village
St. Louis Obligated Group) Ser. A | | 5.13 | | 9/1/2049 | | 1,000,000 | | 866,692 | |
St. Louis County Industrial Development Authority, Revenue
Bonds, Refunding (Friendship Village Sunset Hills) | | 5.00 | | 9/1/2042 | | 1,000,000 | | 890,683 | |
Tender Option Bond Trust Receipts (Series 2023-XM1116), (Jackson
County Missouri Special Obligation, Revenue Bonds, Refunding, Ser. A) Non-recourse, Underlying Coupon
Rate (%) 4.25 | | 0.55 | | 12/1/2053 | | 3,000,000 | c,e,f | 2,787,468 | |
The Missouri Health & Educational Facilities Authority,
Revenue Bonds (Mercy Health) | | 4.00 | | 6/1/2053 | | 1,000,000 | | 888,824 | |
| 5,433,667 | |
Multi-State - .6% | | | | | |
Federal
Home Loan Mortgage Corp. Multifamily Variable Rate Certificates, Revenue Bonds, Ser. M048 | | 3.15 | | 1/15/2036 | | 1,410,000 | c | 1,233,835 | |
Nevada - 1.4% | | | | | |
Clark
County School District, GO (Insured; Assured Guaranty Municipal Corp.) Ser. A | | 4.25 | | 6/15/2041 | | 2,155,000 | | 2,128,958 | |
11
STATEMENT
OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Nevada
- 1.4% (continued) | | | | | |
Reno, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal
Corp.) | | 4.00 | | 6/1/2058 | | 1,000,000 | | 864,232 | |
| 2,993,190 | |
New Hampshire - 1.1%
| | | | | |
New Hampshire Business Finance Authority, Revenue Bonds, Refunding (Springpoint
Senior Living Obligated Group) | | 4.00 | | 1/1/2051 | | 3,000,000 | | 2,247,393 | |
New
Jersey - 5.7% | | | | | |
New Jersey Economic Development Authority, Revenue Bonds | | 5.38 | | 1/1/2043 | | 2,500,000 | | 2,503,380 | |
New Jersey Economic Development Authority, Revenue Bonds (Continental
Airlines Project) | | 5.13 | | 9/15/2023 | | 685,000 | | 685,021 | |
New Jersey Economic
Development Authority, Revenue Bonds, Refunding, Ser. WW | | 5.25 | | 6/15/2025 | | 1,890,000 | g | 1,959,430 | |
New Jersey Economic Development Authority, Revenue Bonds, Refunding,
Ser. XX | | 5.25 | | 6/15/2027 | | 1,155,000 | | 1,187,797 | |
New Jersey Economic
Development Authority, Revenue Bonds, Ser. WW | | 5.25 | | 6/15/2025 | | 110,000 | g | 114,041 | |
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds (RWJ Barnabas Health Obligated Group) | | 4.00 | | 7/1/2051 | | 1,250,000 | | 1,161,961 | |
New Jersey Transportation Trust Fund Authority, Revenue Bonds | | 5.00 | | 6/15/2046 | | 1,000,000 | | 1,028,801 | |
New Jersey Transportation
Trust Fund Authority, Revenue Bonds | | 5.50 | | 6/15/2050 | | 1,600,000 | | 1,744,098 | |
New Jersey Turnpike Authority, Revenue Bonds, Ser. A | | 4.00 | | 1/1/2048 | | 1,800,000 | | 1,715,083 | |
| 12,099,612 | |
New York - 14.4% | | | | | |
New
York Liberty Development Corp., Revenue Bonds, Refunding (Class 1-3 World Trade Center Project) | | 5.00 | | 11/15/2044 | | 3,500,000 | c | 3,349,813 | |
New York Transportation Development Corp., Revenue Bonds (JFK
International Air Terminal) | | 5.00 | | 12/1/2040 | | 1,200,000 | | 1,237,755 | |
New York Transportation
Development Corp., Revenue Bonds (JFK International Air Terminal) | | 5.00 | | 12/1/2036 | | 2,000,000 | | 2,102,062 | |
12
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
New
York - 14.4% (continued) | | | | | |
Niagara Area Development Corp., Revenue Bonds, Refunding (Covanta
Project) Ser. A | | 4.75 | | 11/1/2042 | | 2,000,000 | c | 1,748,402 | |
Tender Option Bond Trust Receipts (Series 2017-XF2419), (Metropolitan
Transportation Authority, Revenue Bonds) Non-recourse, Underlying Coupon Rate (%) 5.00 | | 3.40 | | 11/15/2038 | | 15,000,000 | c,e,f | 15,000,050 | |
Tender Option Bond Trust Receipts (Series 2022-XM1004), (Metropolitan
Transportation Authority, Revenue Bonds, Refunding (Green Bond) (Insured; Assured Guaranty Municipal
Corp.) Ser. C) Non-recourse, Underlying Coupon Rate (%) 4.00 | | 2.22 | | 11/15/2047 | | 3,300,000 | c,e,f | 3,097,682 | |
Triborough Bridge & Tunnel Authority, Revenue Bonds, Refunding,
Ser. A1 | | 5.00 | | 5/15/2051 | | 2,410,000 | | 2,534,611 | |
TSASC, Revenue Bonds,
Refunding, Ser. B | | 5.00 | | 6/1/2045 | | 585,000 | | 545,311 | |
Westchester County
Local Development Corp., Revenue Bonds, Refunding (Senior Learning Community) | | 5.00 | | 7/1/2041 | | 1,000,000 | c | 848,563 | |
| 30,464,249 | |
North
Carolina - 1.1% | | | | | |
North Carolina Medical Care Commission, Revenue Bonds, Refunding
(Lutheran Services for the Aging Obligated Group) | | 4.00 | | 3/1/2051 | | 2,000,000 | | 1,365,237 | |
North Carolina Turnpike Authority, Revenue Bonds (Insured;
Assured Guaranty Municipal Corp.) | | 4.00 | | 1/1/2055 | | 1,000,000 | | 919,145 | |
| 2,284,382 | |
Ohio
- 7.5% | | | | | |
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds, Refunding, Ser.
B2 | | 5.00 | | 6/1/2055 | | 7,700,000 | | 7,049,165 | |
Cuyahoga County, Revenue
Bonds, Refunding (The MetroHealth System) | | 5.25 | | 2/15/2047 | | 2,500,000 | | 2,470,949 | |
Muskingum County, Revenue Bonds (Genesis HealthCare System
Project) | | 5.00 | | 2/15/2044 | | 7,000,000 | | 6,339,822 | |
| 15,859,936 | |
13
STATEMENT
OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Oklahoma
- .7% | | | | | |
Tulsa County Industrial Authority, Revenue Bonds, Refunding (Montereau Project) | | 5.25 | | 11/15/2045 | | 1,500,000 | | 1,448,414 | |
Pennsylvania
- 8.1% | | | | | |
Allentown Neighborhood Improvement Zone Development Authority, Revenue Bonds (City
Center Project) | | 5.00 | | 5/1/2042 | | 1,000,000 | c | 990,362 | |
Allentown School District, GO, Refunding (Insured; Build America
Mutual) Ser. B | | 5.00 | | 2/1/2032 | | 1,455,000 | | 1,578,184 | |
Clairton Municipal
Authority, Revenue Bonds, Refunding, Ser. B | | 5.00 | | 12/1/2042 | | 1,500,000 | | 1,500,348 | |
Clairton Municipal Authority, Revenue Bonds, Refunding, Ser.
B | | 5.00 | | 12/1/2037 | | 4,000,000 | | 4,001,614 | |
Montgomery County Industrial
Development Authority, Revenue Bonds (ACTS Retirement-Life Communities Obligated Group) Ser. C | | 5.00 | | 11/15/2045 | | 1,000,000 | | 939,935 | |
Pennsylvania Economic
Development Financing Authority, Revenue Bonds (The Penndot Major Bridges) | | 6.00 | | 6/30/2061 | | 2,000,000 | | 2,172,255 | |
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds, Refunding (Thomas Jefferson University Obligated Group) Ser. A | | 5.00 | | 9/1/2045 | | 3,000,000 | | 3,004,850 | |
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. A | | 4.00 | | 12/1/2050 | | 1,000,000 | | 911,989 | |
Tender Option Bond
Trust Receipts (Series 2022-XF1525), (Pennsylvania Economic Development Financing Authority UPMC, Revenue
Bonds, Ser. A) Recourse, Underlying Coupon Rate (%) 4.00 | | 2.91 | | 5/15/2053 | | 2,300,000 | c,e,f | 2,054,732 | |
| 17,154,269 | |
Rhode
Island - 3.8% | | | | | |
Providence Public Building Authority, Revenue Bonds (Insured; Assured Guaranty
Municipal Corp.) Ser. A | | 5.00 | | 9/15/2037 | | 4,000,000 | | 4,192,646 | |
14
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity Date | | Principal Amount
($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Rhode
Island - 3.8% (continued) | | | | | |
Tender Option Bond Trust Receipts (Series 2023-XM1117), (Rhode
Island Infrastructure Bank State Revolving Fund, Revenue Bonds) Ser. A) Non-recourse, Underlying Coupon
Rate (%) 4.13 | | 2.37 | | 10/1/2048 | | 4,000,000 | c,e,f | 3,860,239 | |
| 8,052,885 | |
South Carolina - 4.3% | | | | | |
South Carolina Jobs-Economic
Development Authority, Revenue Bonds, Refunding (Bon Secours Mercy Health) | | 4.00 | | 12/1/2044 | | 1,500,000 | | 1,393,924 | |
South Carolina Jobs-Economic Development Authority, Revenue
Bonds, Refunding (Lutheran Homes of South Carolina Obligated Group) | | 5.13 | | 5/1/2048 | | 1,750,000 | | 1,379,005 | |
South Carolina Public Service Authority, Revenue Bonds, Refunding
(Santee Cooper) | | 5.13 | | 12/1/2043 | | 5,000,000 | | 5,000,382 | |
South Carolina Public
Service Authority, Revenue Bonds, Refunding (Santee Cooper) Ser. A | | 4.00 | | 12/1/2055 | | 1,500,000 | | 1,302,064 | |
| 9,075,375 | |
South
Dakota - 1.3% | | | | | |
Tender Option Bond Trust Receipts (Series 2022-XF1409), (South Dakota Heath & Educational Facilities Authority,
Revenue Bonds, Refunding (Avera Health Obligated Group)) Non-recourse, Underlying Coupon Rate (%) 5.00 | | 6.56 | | 7/1/2046 | | 2,680,000 | c,e,f | 2,690,877 | |
Tennessee - .6% | | | | | |
Metropolitan
Government Nashville & Davidson County Health & Educational Facilities Board, Revenue Bonds (Belmont
University) | | 5.25 | | 5/1/2048 | | 1,250,000 | | 1,322,454 | |
Texas
- 12.2% | | | | | |
Clifton Higher Education Finance Corp., Revenue Bonds (IDEA Public Schools) | | 6.00 | | 8/15/2043 | | 1,500,000 | | 1,501,567 | |
Clifton Higher Education
Finance Corp., Revenue Bonds (International Leadership of Texas) Ser. A | | 5.75 | | 8/15/2045 | | 2,500,000 | | 2,415,329 | |
15
STATEMENT
OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Texas
- 12.2% (continued) | | | | | |
Clifton Higher Education Finance Corp., Revenue Bonds (International
Leadership of Texas) Ser. D | | 5.75 | | 8/15/2033 | | 1,000,000 | | 1,010,224 | |
Clifton Higher Education
Finance Corp., Revenue Bonds (International Leadership of Texas) Ser. D | | 6.13 | | 8/15/2048 | | 3,500,000 | | 3,500,802 | |
Dallas Fort Worth International Airport, Revenue Bonds, Refunding,
Ser. B | | 5.00 | | 11/1/2040 | | 1,500,000 | | 1,601,211 | |
Grand Parkway Transportation
Corp., Revenue Bonds, Refunding | | 4.00 | | 10/1/2045 | | 1,165,000 | | 1,077,253 | |
Houston Airport System,
Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A | | 4.50 | | 7/1/2053 | | 1,400,000 | | 1,346,478 | |
Houston Airport System, Revenue Bonds, Refunding, Ser. A | | 4.00 | | 7/1/2039 | | 2,480,000 | | 2,364,944 | |
Lamar Consolidated
Independent School District, GO | | 4.00 | | 2/15/2053 | | 1,000,000 | | 918,299 | |
Mission Economic Development
Corp., Revenue Bonds, Refunding (Natgasoline Project) | | 4.63 | | 10/1/2031 | | 2,500,000 | c | 2,443,132 | |
Tender Option Bond Trust Receipts (Series 2023-XM1125), (Medina
Valley Independent School District, GO (Insured; Permanent School Fund Guarantee Program)) Non-recourse,
Underlying Coupon Rate (%) 4.00 | | 0.69 | | 2/15/2053 | | 4,500,000 | c,e,f | 4,237,302 | |
Texas Private Activity Bond Surface Transportation Corp., Revenue
Bonds (Segment 3C Project) | | 5.00 | | 6/30/2058 | | 2,000,000 | | 2,003,860 | |
Waxahachie Independent
School District, GO, (Insured; Permanent School Fund Guarantee Program) | | 4.25 | | 2/15/2053 | | 1,500,000 | | 1,454,946 | |
| 25,875,347 | |
U.S.
Related - 1.8% | | | | | |
Puerto Rico, GO, Ser. A | | 0.00 | | 7/1/2024 | | 26,648 | h | 25,680 | |
Puerto Rico, GO, Ser. A | | 0.00 | | 7/1/2033 | | 211,359 | h | 128,782 | |
Puerto Rico, GO, Ser. A1 | | 4.00 | | 7/1/2037 | | 126,704 | | 113,996 | |
Puerto Rico, GO, Ser. A1 | | 4.00 | | 7/1/2041 | | 172,269 | | 148,971 | |
Puerto Rico, GO, Ser. A1 | | 4.00 | | 7/1/2046 | | 179,157 | | 149,144 | |
Puerto Rico, GO, Ser. A1 | | 4.00 | | 7/1/2035 | | 147,628 | | 135,679 | |
Puerto Rico, GO, Ser. A1 | | 4.00 | | 7/1/2033 | | 164,238 | | 153,789 | |
Puerto Rico, GO, Ser. A1 | | 5.38 | | 7/1/2025 | | 182,915 | | 186,395 | |
16
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
U.S.
Related - 1.8% (continued) | | | | | |
Puerto Rico, GO, Ser. A1 | | 5.63 | | 7/1/2029 | | 2,178,318 | | 2,304,748 | |
Puerto Rico, GO, Ser. A1 | | 5.63 | | 7/1/2027 | | 181,259 | | 189,045 | |
Puerto Rico, GO, Ser. A1 | | 5.75 | | 7/1/2031 | | 173,199 | | 187,329 | |
| 3,723,558 | |
Utah
- 1.7% | | | | | |
Salt Lake City, Revenue Bonds, Ser. A | | 5.00 | | 7/1/2048 | | 1,000,000 | | 1,014,476 | |
Salt Lake City, Revenue Bonds, Ser. A | | 5.00 | | 7/1/2042 | | 1,205,000 | | 1,223,332 | |
Utah Charter School Finance Authority, Revenue Bonds, Refunding
(Summit Academy) Ser. A | | 5.00 | | 4/15/2039 | | 1,400,000 | | 1,435,005 | |
| 3,672,813 | |
Virginia - 2.0% | | | | | |
Virginia
Small Business Financing Authority, Revenue Bonds (Transform 66 P3 Project) | | 5.00 | | 12/31/2049 | | 1,000,000 | | 1,001,650 | |
Virginia Small Business Financing Authority, Revenue Bonds,
Refunding | | 5.00 | | 12/31/2057 | | 1,500,000 | | 1,505,399 | |
Virginia Small Business
Financing Authority, Revenue Bonds, Refunding (95 Express Lanes) | | 4.00 | | 1/1/2048 | | 1,000,000 | | 865,203 | |
Williamsburg Economic Development Authority, Revenue Bonds
(William & Marry Project) (Insured; Assured Guaranty Municipal Corp.) Ser. A | | 4.13 | | 7/1/2058 | | 1,000,000 | | 939,258 | |
| 4,311,510 | |
Washington
- 2.7% | | | | | |
Washington Convention Center Public Facilities District, Revenue Bonds, Ser. B | | 4.00 | | 7/1/2058 | | 1,000,000 | | 838,590 | |
Washington Health Care
Facilities Authority, Revenue Bonds, Refunding, Ser. A | | 5.00 | | 10/1/2042 | | 5,000,000 | | 4,792,245 | |
| 5,630,835 | |
Wisconsin
- 4.6% | | | | | |
Public Finance Authority, Revenue Bonds (Cone Health) Ser. A | | 5.00 | | 10/1/2052 | | 1,000,000 | | 1,019,053 | |
Public Finance Authority, Revenue Bonds (EMU Campus Living)
(Insured; Build America Mutual) Ser. A1 | | 5.50 | | 7/1/2052 | | 1,200,000 | | 1,296,704 | |
Public Finance Authority, Revenue Bonds (EMU Campus Living)
(Insured; Build America Mutual) Ser. A1 | | 5.63 | | 7/1/2055 | | 1,315,000 | | 1,431,602 | |
17
STATEMENT
OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | |
|
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value
($) | |
Long-Term
Municipal Investments - 153.6% (continued) | | | | | |
Wisconsin
- 4.6% (continued) | | | | | |
Public Finance Authority, Revenue Bonds, Refunding, Ser. B | | 5.00 | | 7/1/2042 | | 5,000,000 | | 4,874,695 | |
Wisconsin Health &
Educational Facilities Authority, Revenue Bonds (Bellin Memorial Hospital Obligated Group) | | 5.50 | | 12/1/2052 | | 1,000,000 | | 1,058,489 | |
| 9,680,543 | |
Total Investments (cost $339,466,423) | | 153.6% | 325,211,957 | |
Liabilities, Less Cash and Receivables | | (18.2%) | (38,442,851) | |
RVMTPS, at liquidation
value | | (35.4%) | (75,000,000) | |
Net Assets Applicable
to Common Stockholders | | 100.0% | 211,769,106 | |
a These securities have a put feature; the date shown represents
the put date and the bond holder can take a specific action to retain the bond after the put date.
b Zero
coupon until a specified date at which time the stated coupon rate becomes effective until maturity.
c Security
exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may
be resold in transactions exempt from registration, normally to qualified institutional buyers. At August
31, 2023, these securities were valued at $82,493,630 or 38.95% of net assets.
d Non-income producing—security in default.
e The Variable Rate is determined by the Remarketing Agent in
its sole discretion based on prevailing market conditions and may, but need not, be established by reference
to one or more financial indices.
f Collateral for floating rate borrowings. The coupon rate given
represents the current interest rate for the inverse floating rate security.
g These securities are prerefunded; the date shown represents
the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which
are held in escrow and are used to pay principal and interest on the municipal issue and to retire the
bonds in full at the earliest refunding date.
h Security issued with a zero coupon. Income is recognized through
the accretion of discount.
18
| |
Portfolio Summary (Unaudited) † | Value
(%) |
Medical | 19.9 |
General | 19.8 |
Education | 18.5 |
Airport | 16.6 |
Transportation | 15.8 |
Development | 13.1 |
Nursing
Homes | 9.0 |
General Obligation | 7.4 |
Water | 5.8 |
School
District | 5.6 |
Tobacco Settlement | 5.3 |
Power | 5.2 |
Prerefunded | 3.9 |
Utilities | 2.6 |
Housing | 1.3 |
Multifamily Housing | 1.2 |
Single Family Housing | 1.1 |
Student Loan | .5 |
Facilities | .5 |
Special Tax | .5 |
| 153.6 |
† Based on net assets.
See notes to financial statements.
19
| | | |
|
Summary
of Abbreviations (Unaudited) |
|
ABAG | Association
of Bay Area Governments | AGC | ACE Guaranty Corporation |
AGIC | Asset Guaranty Insurance Company | AMBAC | American Municipal Bond Assurance Corporation |
BAN | Bond Anticipation Notes | BSBY | Bloomberg
Short-Term Bank Yield Index |
CIFG | CDC
Ixis Financial Guaranty | COP | Certificate of Participation |
CP | Commercial Paper | DRIVERS | Derivative
Inverse Tax-Exempt Receipts |
EFFR | Effective
Federal Funds Rate | FGIC | Financial Guaranty Insurance Company |
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank |
FHLMC | Federal Home Loan Mortgage Corporation | FNMA | Federal National Mortgage Association |
GAN | Grant Anticipation Notes | GIC | Guaranteed
Investment Contract |
GNMA | Government National Mortgage Association | GO | General Obligation |
IDC | Industrial
Development Corporation | LIBOR | London Interbank Offered Rate |
LOC | Letter of Credit | LR | Lease
Revenue |
NAN | Note Anticipation Notes | MFHR | Multi-Family
Housing Revenue |
MFMR | Multi-Family Mortgage Revenue | MUNIPSA | Securities Industry and Financial Markets
Association Municipal Swap Index Yield |
OBFR | Overnight
Bank Funding Rate | PILOT | Payment in Lieu of Taxes |
PRIME | Prime Lending Rate | PUTTERS | Puttable
Tax-Exempt Receipts |
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes |
RIB | Residual Interest Bonds | SFHR | Single
Family Housing Revenue |
SFMR | Single
Family Mortgage Revenue | SOFR | Secured Overnight Financing Rate |
TAN | Tax Anticipation Notes | TRAN | Tax
and Revenue Anticipation Notes |
TSFR | Term
Secured Overnight Financing Rate | U.S.
T-BILL | U.S.
Treasury Bill Money Market Yield |
XLCA | XL
Capital Assurance | RVMTPS | Remarketable Variable Rate MuniFund Term
Preferred Shares |
VMTPS | Variable Rate Muni Term Preferred Shares | | |
See
notes to financial statements.
20
STATEMENT OF ASSETS AND LIABILITIES
August
31, 2023 (Unaudited)
| | | | | | |
| | | | | | |
| | | Cost | | Value | |
Assets ($): | | | | |
Investments in securities—See Statement of Investments | 339,466,423 | | 325,211,957 | |
Cash | | | | | 466,693 | |
Interest
receivable | | 3,934,890 | |
Prepaid expenses | | | | | 63,485 | |
| | | | |
329,677,025 | |
Liabilities ($): | | | | |
Due to BNY Mellon Investment Adviser, Inc.
and affiliates—Note 2(b) | | 185,886 | |
Payable for inverse floater notes issued—Note
3 | | 41,405,000 | |
Dividends payable to Common
Stockholders | | 736,263 | |
Interest and expense payable
related to inverse floater notes issued—Note 3 | | 462,541 | |
Directors’
fees and expenses payable | | 15,970 | |
Other accrued expenses | | | | | 102,259 | |
| | | | |
42,907,919 | |
RVMTPS, $.001 par value per share (750 shares
issued and outstanding at $100,000 per share liquidation value)—Note 1 | |
75,000,000 | |
Net Assets Applicable to Common Stockholders
($) | | | 211,769,106 | |
Composition
of Net Assets ($): | | | | |
Common Stock, par value, $.001 per share (18,405,973
shares issued and outstanding) | | | | | 18,406 | |
Paid-in
capital | | | | | 262,501,288 | |
Total distributable earnings
(loss) | | | | | (50,750,588) | |
Net
Assets Applicable to Common Stockholders ($) | | | 211,769,106 | |
| | | | |
Shares Outstanding | | |
(250 million shares authorized) | 18,405,973 | |
Net
Asset Value Per Share of Common Stock ($) | | 11.51 | |
| | | | |
See notes to financial statements. | | | | |
21
STATEMENT OF OPERATIONS
Six
Months Ended August 31, 2023 (Unaudited)
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Investment Income ($): | | | | |
Interest Income | | | 7,648,945 | |
Expenses: | | | | |
Management
fee—Note 2(a) | | | 1,082,275 | |
RVMTPS
interest expense and fees—Note 1(g) and Note 3 | | | 1,762,565 | |
Interest and expense related
to inverse floater notes issued—Note 3 | | | 789,446 | |
Professional
fees | | | 52,457 | |
Shareholders’
reports | | | 27,599 | |
Directors’
fees and expenses—Note 2(c) | | | 27,351 | |
Registration
fees | | | 11,888 | |
Chief
Compliance Officer fees—Note 2(b) | | | 6,316 | |
Shareholder servicing costs | | | 5,511 | |
Tender
and paying agent fees—Note 2(b) | | | 3,975 | |
Custodian fees—Note 2(b) | | | 2,786 | |
Miscellaneous | | | 38,169 | |
Total
Expenses | | |
3,810,338 | |
Less—reduction in fees due
to earnings credits—Note 2(b) | | | (2,786) | |
Net
Expenses | | | 3,807,552 | |
Net Investment Income | | | 3,841,393 | |
Realized
and Unrealized Gain (Loss) on Investments—Note 3 ($): | | |
Net realized gain (loss) on
investments | (1,716,415) | |
Net change in unrealized appreciation
(depreciation) on investments |
(1,223,991) | |
Net Realized and Unrealized Gain (Loss) on
Investments | | | (2,940,406) | |
Net
Increase in Net Assets Applicable to Common Stockholders Resulting from Operations | | 900,987 | |
| | | | | | |
See notes to financial statements. | | | | | |
22
STATEMENT OF CASH FLOWS
Six
Months Ended August 31, 2023 (Unaudited)
| | | | | | |
| | | | | |
| | | | | | |
Cash Flows from Operating Activities ($): | | | | | |
Purchases of portfolio securities | |
(51,842,090) | | | |
Proceeds
from sales of portfolio securities |
47,778,107 | | | |
Interest
income received | | 7,783,287 | | | |
Interest and expense related to inverse floater
notes issued | | (689,078) | | | |
RVMTPS interest expense and fees paid | | (1,762,565) | | | |
Expenses paid to BNY Mellon Investment
Adviser, Inc. and affiliates | | (1,083,380) | | | |
Operating expenses paid | | (150,716) | | | |
Net Cash Provided (or Used) in Operating Activities | | | | 33,565 | |
Cash
Flows from Financing Activities ($): | | | | | |
Dividends paid to Common Stockholders | | (4,417,433) | | | |
Increase in payable for inverse floater notes
issued | | 3,275,000 | | | |
Net
Cash Provided (or Used) in Financing Activities | | (1,142,433) | |
Net Increase (Decrease) in Cash | | (1,108,868) | |
Cash
at beginning of period | | 1,575,561 | |
Cash
at End of Period | |
466,693 | |
Reconciliation
of Net Increase (Decrease) in Net Assets Applicable to | | | |
| Common Stockholders Resulting from Operations to | | | |
| Net Cash Provided (or Used) in Operating Activities ($): | | | |
Net
Increase in Net Assets Resulting From Operations | | 900,987 | |
Adjustments to Reconcile Net Increase (Decrease) in Net Assets | | | |
| Applicable to Common Stockholders Resulting from | | | |
| Operations to Net Cash Provided (or Used) in Operating Activities
($): | | | |
Increase in investments in securities at cost | | (1,401,078) | |
Decrease
in interest receivable | | 134,342 | |
Decrease in prepaid expenses | | 42,965
| |
Increase in Due to BNY Mellon Investment
Adviser, Inc. and affiliates | | 9,186 | |
Decrease in payable for investment securities purchased | | (946,490) | |
Increase
in interest and expense payable related to inverse floater notes issued | | 100,368 | |
Decrease
in Directors' fees and expenses payable | | (20,859) | |
Decrease in other accrued expenses | | (9,847) | |
Net
change in unrealized (appreciation) depreciation on investments | | 1,223,991 | |
Net Cash Provided (or
Used) in Operating Activities | |
33,565 | |
| | | | | | |
See
notes to financial statements. | | | | | |
23
STATEMENT
OF CHANGES IN NET ASSETS
| | | | | | | | | |
| | | | | | | | | |
| | | | Six
Months Ended August 31, 2023 (Unaudited) | | Year Ended February 28, 2023 | |
Operations ($): | | | | | | | | |
Net investment income | | | 3,841,393 | | | | 9,676,287 | |
Net
realized gain (loss) on investments | | (1,716,415) | | | | (4,905,702) | |
Net
change in unrealized appreciation (depreciation) on investments | | (1,223,991) | | | | (33,909,712) | |
Net Increase
(Decrease) in Net Assets Applicable to Common Stockholders Resulting from
Operations | 900,987 | | | | (29,139,127) | |
Distributions
($): | |
Distributions to stockholders | | | (4,417,433) | | | | (10,747,044) | |
Distributions
to Common Stockholders | | | (4,417,433) | | | | (10,747,044) | |
Capital
Stock Transactions ($): | |
Distributions reinvested | | | - | | | | 85,319 | |
Increase
(Decrease) in Net Assets from Capital Stock Transactions | - | | | | 85,319 | |
Total
Increase (Decrease) in Net Assets Applicable to Common Stockholders | (3,516,446) | | | | (39,800,852) | |
Net Assets
Applicable to Common Stockholders ($): | |
Beginning
of Period | | | 215,285,552 | | | | 255,086,404 | |
End of
Period | | | 211,769,106 | | | | 215,285,552 | |
Capital
Share Transactions (Common Shares): | |
Shares issued for distributions
reinvested | | | - | | | | 6,978 | |
Net
Increase (Decrease) in Shares Outstanding |
- | | | | 6,978 | |
| | | | | | | | | |
See notes to financial statements. | | | | | | | | |
24
FINANCIAL
HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Market price total return is calculated assuming an initial investment made at the market price at the
beginning of the period, reinvestment of all dividends and distributions at market price during the period,
and sale at the market price on the last day of the period. These figures have been derived from the
fund’s financial statements and with respect to common stock, market price data for the fund’s common
shares.
| | | | | | | | |
| Six
Months Ended | | | |
| August
31, 2023 | | Year Ended February 28/29, | |
| (Unaudited) | | 2023 | 2022 | 2021 | 2020 | 2019 | |
Per Share
Data ($): | | | | | | | | |
Net asset value, beginning of period | 11.70 | | 13.86 | 14.41 | 15.06 | 13.75 | 13.96 | |
Investment Operations: | | | | | | | | |
Net investment incomea | .21 | | .53 | .63 | .66 | .64 | .66 | |
Net realized and unrealized gain
(loss) on investments | (.16) | | (2.11) | (.54) | (.67) | 1.31 | (.23) | |
Total from Investment
Operations | .05 | | (1.58) | .09 | (.01) | 1.95 | .43 | |
Distributions
to Common Shareholders: | | | | | | | | |
Dividends
from net investment income | (.24) | | (.58) | (.64) | (.64) | (.64) | (.64) | |
Net asset value, end of period | 11.51 | | 11.70 | 13.86 | 14.41 | 15.06 | 13.75 | |
Market value, end of period | 10.56 | | 10.97 | 13.17 | 13.95 | 14.18 | 12.67 | |
Market
Price Total Return (%) | (1.61) | b | (12.41) | (1.33) | 3.15 | 17.12 | 8.49 | |
Ratios/Supplemental Data (%): | | | | | | | | |
Ratio
of total expenses to average net assets | 3.49 | c | 2.60 | 1.68 | 1.87 | 2.12 | 2.19 | |
Ratio of net expenses to
average net assets | 3.49 | c | 2.60 | 1.68 | 1.87 | 2.12 | 2.19 | |
Ratio
of interest and expense related to inverse floater notes issued, RVMTPS
and VMTPS interest expense and fees to average net assets | 2.34 | c | 1.45 | .55 | .69 | 1.05 | 1.07 | |
Ratio of net investment income to
average net assets | 3.52 | c | 4.29 | 4.32 | 4.72 | 4.43 | 4.76 | |
Portfolio Turnover
Rate | 14.68 | b | 24.75 | 11.33 | 17.56 | 22.94 | 21.46 | |
Asset coverage of RVMTPS
and VMTPS, end of period | 382 | | 387 | 440 | 453 | 469 | 437 | |
Net Assets, Applicable to
Common Shareholders, end of period ($ x 1,000) | 211,769 | | 215,286 | 255,086 | 264,941 | 276,836 | 252,668 | |
RVMTPS and VMTPS outstanding, end
of period ($ x 1,000) | 75,000 | | 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | |
Floating Rate Notes outstanding
($ x 1,000) | 41,405 | | 38,130 | 48,640 | 59,890 | 59,845 | 42,055 | |
a Based
on average common shares outstanding.
b Not annualized.
c Annualized.
See
notes to financial statements.
25
NOTES
TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
BNY
Mellon Municipal Bond Infrastructure Fund, Inc. (the “fund”), which is registered under the Investment
Company Act of 1940, as amended (the “Act”), is a diversified closed-end management investment company.
The fund’s investment objective is to seek to provide as high a level of current income exempt from
regular federal income tax as is consistent with the preservation of capital. BNY Mellon Investment Adviser,
Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY
Mellon”), serves as the fund’s investment adviser. Insight North America LLC (the “Sub-Adviser”),
an indirect wholly-owned subsidiary of BNY Mellon and an affiliate of the Adviser, serves as the fund’s
sub-adviser. The fund’s common stock (“Common Stock”) trades on the New York Stock Exchange (the
“NYSE”) under the ticker symbol DMB.
The fund has outstanding 750 shares of
Remarketable Variable Rate MuniFund Term Preferred Shares (“RVMTPS”). The fund is subject to certain
restrictions relating to the RVMTPS. Failure to comply with these restrictions could preclude the fund
from declaring any distributions to shareholders of Common Stock (“Common Shareholders”) or repurchasing
shares of Common Stock and/or could trigger the mandatory redemption of RVMTPS at their liquidation value
(i.e., $100,000 per share). Thus, redemptions of RVMTPS may be deemed to be outside of the control of
the fund.
The RVMTPS have a mandatory redemption date of October 16, 2049, and are subject
to mandatory tender upon each 42 month anniversary of October 16, 2020 or upon the end of a Special Terms
Period (as defined in the fund’s articles supplementary) (each an Early Term Redemption Date (as defined
in the fund’s articles supplementary)), subject to the option of the holders to retain the RVMTPS.
RVMTPS that are neither retained by the holder nor successfully remarketed by the Early Term Redemption
Date will be redeemed by the fund. The fund is subject to a Tender and Paying Agent Agreement with BNY
Mellon, with respect to the RVMTPS.
The holders of RVMTPS, voting as a separate
class, have the right to elect at least two directors. The holders of RVMTPS will vote as a separate
class on certain other matters, as required by law. The fund’s Board of Directors (the “Board”)
has designated Nathan Leventhal and Benaree Pratt Wiley as directors to be elected by the holders of
RVMTPS.
Dividends
on RVMTPS are normally declared daily and paid monthly. The Dividend Rate on the RVMTPS is, except as
otherwise provided, equal to the rate per annum that results from the sum of (1) the
Index Rate plus (2)
26
the Applicable Spread as determined for the RVMTPS on the Rate Determination Date
immediately preceding such Subsequent Rate Period plus (3) the Failed Remarketing Spread (all defined
terms as defined in the fund’s articles supplementary).
The Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference
of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to
be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange
Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC
registrants. The fund is an investment company and applies the accounting and reporting guidance of the
FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s financial statements are prepared
in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results
could differ from those estimates.
The fund enters into contracts
that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is
unknown. The fund does not anticipate recognizing any loss related to these arrangements.
(a)
Portfolio valuation: The fair value of a financial instrument is the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes
the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority
to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally,
GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly
and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced
disclosures around valuation inputs and techniques used during annual and interim periods.
Various
inputs are used in determining the value of the fund’s investments relating to fair value measurements.
These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted
prices in active markets for identical investments.
27
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (continued)
Level 2—other significant observable inputs (including quoted prices
for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level
3—significant
unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication
of the risk associated with investing in those securities.
Changes in valuation
techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation
techniques used to value the fund’s investments are as follows:
The Board has designated
the Adviser as the fund’s valuation designee to make all fair value determinations with respect to
the fund’s portfolio investments, subject to the Board’s oversight and pursuant to Rule 2a-5 under
the Act.
Investments in municipal securities are valued each business day by an independent
pricing service (the “Service”) approved by the Board. Investments for which quoted bid prices are
readily available and are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such
securities) and asked prices (as calculated by the Service based upon its evaluation of the market for
such securities). Municipal investments (which constitute a majority of the portfolio securities) are
carried at fair value as determined by the Service, based on methods which include consideration of the
following: yields or prices of municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. The Service is engaged under the
general oversight of the Board. All of the preceding securities are generally categorized within Level
2 of the fair value hierarchy.
When market quotations or official closing prices are not
readily available, or are determined not to accurately reflect fair value, such as when the value of
a security has been significantly affected by events after the close of the exchange or market on which
the security is principally traded, but before the fund calculates its net asset value, the fund may
value these investments at fair value as determined in accordance with the procedures approved by the
Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical
data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence
the market in which the securities are purchased and sold, and public trading in similar securities of
the issuer or comparable issuers.
28
These securities are either categorized within Level 2 or 3 of the fair value
hierarchy depending on the relevant inputs used.
For securities where observable inputs
are limited, assumptions about market activity and risk are used and such securities are generally categorized
within Level 3 of the fair value hierarchy.
The following is a summary of the inputs used as of August
31, 2023 in valuing the fund’s investments:
| | | | | | |
| Level 1-Unadjusted Quoted Prices | Level
2- Other Significant Observable Inputs | | Level 3-Significant Unobservable
Inputs | Total | |
Assets ($) | | |
Investments in Securities:† | | |
Municipal
Securities | - | 325,211,957 | | - | 325,211,957 | |
Liabilities
($) | | |
Other Financial Instruments: | | |
Inverse Floater Notes†† | - | (41,405,000) | | - | (41,405,000) | |
RVMTPS†† | - | (75,000,000) | | - | (75,000,000) | |
† See
Statement of Investments for additional detailed categorizations, if any.
†† Certain of the fund’s liabilities are held at carrying amount,
which approximates fair value for financial reporting purposes.
(b) Securities transactions
and investment income: Securities transactions are recorded on a trade date basis. Realized gains and
losses from securities transactions are recorded on the identified cost basis. Interest income, adjusted
for accretion of discount and amortization of premium on investments, is earned from settlement date
and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the trade date.
(c) Market Risk: The value of the securities
in which the fund invests may be affected by political, regulatory, economic and social developments,
and developments that impact specific economic sectors, industries or segments of the market. The value
of a security may also decline due to general market conditions that are not specifically related to
a particular company or industry, such as real or perceived adverse economic conditions, changes in the
general outlook for corporate earnings, changes in interest or currency rates, changes to inflation,
adverse changes to credit markets or adverse investor sentiment generally.
Additional
Information section within the annual report dated February 28, 2023, provides more details about the
fund’s principal risk factors.
29
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (continued)
(d)
Dividends and distributions to Common Shareholders: Dividends and distributions are recorded
on the ex-dividend date. Dividends from net investment income are normally declared and paid monthly.
Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund
may make distributions on a more frequent basis to comply with the distribution requirements of the Internal
Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can
be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income
and capital gain distributions are determined in accordance with income tax regulations, which may differ
from GAAP.
Common Shareholders will have their distributions reinvested
in additional shares of the fund, unless such Common Shareholders elect to receive cash, at the lower
of the market price or net asset value per share (but not less than 95% of the market price). If market
price is equal to or exceeds net asset value, shares will be issued at net asset value. If net asset
value exceeds market price, Computershare Inc., the transfer agent for the fund’s Common Stock, will
buy fund shares in the open market and reinvest those shares accordingly.
On
August 2, 2023, the Board declared a cash dividend of $.040 per share from net investment income, payable
on September 1, 2023, to Common Shareholders of record as of the close of business on August 17, 2023.
The ex-dividend date was August 16, 2023.
(e) Dividends and distributions to shareholders of RVMTPS:
Dividends on RVMTPS are normally declared daily and paid monthly. The Dividend Rate on the RVMTPS is,
except as otherwise provided, equal to the rate per annum that results from the sum of (1) the Index
Rate plus (2) the Applicable Spread as determined for the RVMTPS on the Rate Determination Date immediately
preceding such Subsequent Rate Period plus (3) the Failed Remarketing Spread. The Applicable Rate of
the RVMTPS was equal to the sum of 1.20% per annum plus the Securities Industry and Financial Markets
Association Municipal Swap Index rate of 4.06% on August 31, 2023. The dividend rate as of August 31,
2023 for the RVMTPS was 5.26% (all defined terms as defined in the fund’s articles supplementary).
(f)
Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment
company, which can distribute tax-exempt dividends, by complying with the applicable provisions of the
Code, and to make distributions of income and net realized capital gain sufficient to relieve it from
substantially all federal income and excise taxes.
30
As of and during the period ended August 31, 2023, the fund did not have any liabilities
for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain
tax positions as income tax expense in the Statement of Operations. During the period ended August 31,
2023, the fund did not incur any interest or penalties.
Each tax year in the
three-year period ended February 28, 2023 remains subject to examination by the Internal Revenue Service
and state taxing authorities.
The fund is permitted to carry forward capital losses for
an unlimited period. Furthermore, capital loss carryovers retain their character as either short-term
or long-term capital losses.
The fund has an unused capital loss carryover of $35,350,204
available for federal income tax purposes to be applied against future net realized capital gains, if
any, realized subsequent to February 28, 2023. The fund has $33,596,732 of short-term capital losses
and $1,753,472 of long-term capital losses which can be carried forward for an unlimited period.
The tax character of distributions paid to shareholders during the fiscal year
ended February 28, 2023 was as follows: tax-exempt income of $10,747,044. The tax character of current
year distributions will be determined at the end of the current fiscal year.
(g) RVMTPS: The
fund’s RVMTPS aggregate liquidation preference is shown as a liability, if any, since they have stated
mandatory redemption date of October 16, 2049. Dividends paid to RVMTPS are treated as interest expense
and recorded on the accrual basis. Costs directly related to the issuance of the RVMTPS are considered
debt issuance costs which have been fully amortized into the expense over the life of the RVMTPS.
NOTE
2—Management Fee, Sub-Advisory Fee and Other Transactions with Affiliates:
(a) Pursuant to a management
agreement (the “Agreement”) with the Adviser, the management fee is computed at the annual rate of
..65% of the value of the fund’s daily total assets, including any assets attributable to effective
leverage, minus certain defined accrued liabilities (the “Managed Assets”) and is payable monthly.
Pursuant to a sub-investment advisory agreement between the Adviser and the Sub-Adviser,
the Adviser pays the Sub-Adviser a monthly fee at the annual rate of .27% of the value of the fund’s
average daily Managed Assets.
31
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (continued)
(b)
The
fund has an arrangement with The Bank of New York Mellon (the “Custodian”), a subsidiary of BNY Mellon
and an affiliate of the Adviser, whereby the fund will receive interest income or be charged overdraft
fees when cash balances are maintained. For financial reporting purposes, the fund includes this interest
income and overdraft fees, if any, as interest income in the Statement of Operations.
The fund compensates
the Custodian under a custody agreement, for providing custodial services for the fund. These fees are
determined based on net assets and transaction activity. During the period ended August 31, 2023,
the
fund was charged $2,786 pursuant to the custody agreement. These fees were offset by the Custodian from
an earnings credit of $2,786.
The fund compensates BNY Mellon under a Tender and Paying
Agent Agreement for providing certain transfer agency and payment services with respect to the RVMTPS.
During the period ended August 31, 2023, the fund was charged $3,975 for the services
provided by the Tender and Paying Agent.
During the period ended August 31, 2023,
the fund was charged $6,316 for services performed by the fund’s Chief Compliance Officer and his staff.
These fees are included in Chief Compliance Officer fees in the Statement of Operations.
The
components of “Due to BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets
and Liabilities consist of: management fee of $181,408, Custodian fees of $2,000, Tender and Paying Agent
fees of $663 and Chief Compliance Officer fees of $1,815.
(c) Each board member also
serves as a board member of other funds in the BNY Mellon Family of Funds complex. Annual retainer fees
and attendance fees are allocated to each fund based on net assets.
NOTE 3—Securities Transactions:
The aggregate amount of purchases and sales (including paydowns) of investment
securities, excluding short-term securities, during the period ended August 31, 2023, amounted to $42,473,497
and $42,249,391, respectively.
Inverse Floater Securities: The fund participates
in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds are transferred
to a trust (the “Inverse Floater Trust”). The Inverse Floater Trust typically issues two variable
rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds.
One of these variable rate securities pays interest based on a short-term floating rate set by a remarketing
agent at predetermined intervals (“Trust Certificates”). A
32
residual interest tax-exempt security is also created by the Inverse Floater Trust,
which is transferred to the fund, and is paid interest based on the remaining cash flows of the Inverse
Floater Trust, after payment of interest on the other securities and various expenses of the Inverse
Floater Trust. An Inverse Floater Trust may be collapsed without the consent of the fund due to certain
termination events such as bankruptcy, default or other credit event.
The
fund accounts for the transfer of bonds to the Inverse Floater Trust as secured borrowings, with the
securities transferred remaining in the fund’s investments, and the Trust Certificates reflected as
fund liabilities in the Statement of Assets and Liabilities.
The fund may invest
in inverse floater securities on either a non-recourse or recourse basis. These securities are typically
supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity
Provider”) that allows the holders of the Trust Certificates to tender their certificates in exchange
for payment from the Liquidity Provider of par plus accrued interest on any business day prior to a termination
event. When the fund invests in inverse floater securities on a non-recourse basis, the Liquidity Provider
is required to make a payment under the liquidity facility due to a termination event to the holders
of the Trust Certificates. When this occurs, the Liquidity Provider typically liquidates all or a portion
of the municipal securities held in the Inverse Floater Trust. A liquidation shortfall occurs if the
Trust Certificates exceed the proceeds of the sale of the bonds in the Inverse Floater Trust (“Liquidation
Shortfall”). When a fund invests in inverse floater securities on a recourse basis, the fund typically
enters into a reimbursement agreement with the Liquidity Provider where the fund is required to repay
the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a fund investing in a recourse
inverse floater security bears the risk of loss with respect to any Liquidation Shortfall.
The
average amount of borrowings outstanding under the inverse floater structure during the period ended
August 31, 2023 was approximately $38,943,614, with a related weighted average annualized interest rate
of 4.03%.
RVMTPS:
During the period ended August 31, 2023, total fees pursuant to RVMTPS amounted to $1,762,565 inclusive
of $1,687,910 of interest expense and $74,655 of amortized deferred cost fees. These fees are included
in RVMTPS interest expense and fees in the Statement of Operations.
33
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (continued)
The average amount of borrowings outstanding for the RVMTPS during the period
ended August 31, 2023 was approximately $75,000,000, with a related weighted average annualized interest
rate of 4.48%.
At August 31, 2023, accumulated net unrealized depreciation
on investments was $14,254,466, consisting of $3,766,041 gross unrealized appreciation and $18,020,507
gross unrealized depreciation.
At August 31, 2023, the cost of investments
for federal income tax purposes was substantially the same as the cost for financial reporting purposes
(see the Statement of Investments).
NOTE 4—Subsequent Event:
The RVMTPS have a mandatory redemption
date of October 16, 2049, and are subject to mandatory tender upon each 42 month anniversary of October
16, 2020, the effective date of their refinancing, or upon the end of a Special Terms Period (each, an
Early Term Redemption Date), subject to the option of the holders to retain the RVMTPS. On October 16,
2023, the RVMTPS were successfully remarketed during their first Early Term Redemption Date, and the
RVMTPS were extended through the 42 month anniversary of October 16, 2023.
34
PROXY
RESULTS (Unaudited)
Common Shareholders and holders of RVMTPS
voted together as a single class (except as noted below) on the following proposal presented at the annual
shareholders’ meeting held on August 17, 2023.
| | | | |
| | Shares |
| | For | | Authority Withheld |
To
elect three Class III Directors:† | | | |
| Joseph S. DiMartino | 14,357,619 | | 504,950 |
| Andrew J. Donohue | 14,457,334 | | 405,235 |
| Isabel P. Dunst | 14,459,003 | | 403,566 |
| Benaree
Pratt Wiley†† | 750 | | - |
† The
terms of these Directors expire in 2026.
†† Elected solely by RVMTPS holders, Common Shareholders not
entitled to vote.
35
INFORMATION ABOUT THE RENEWAL OF THE FUND'S MANAGEMENT AND
SUB-INVESTMENT ADVISORY AGREEMENTS (Unaudited)
At a meeting of the fund’s Board of Directors held on August
1-2, 2023, the Board considered the renewal of the fund’s Management Agreement, pursuant to which the
Adviser provides the fund with investment advisory and administrative services, and the Sub-Investment
Advisory Agreement (together with the Management Agreement, the “Agreements”), pursuant to which
Insight North America LLC (the “Sub-Adviser”) provides day-to-day management of the fund’s investments.
The Board members, none of whom are “interested persons” (as defined in the Investment Company Act
of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met
with counsel in executive session separate from representatives of the Adviser and the Sub-Adviser.
In considering the renewal of the Agreements, the Board considered several factors that it believed to
be relevant, including those discussed below. The Board did not identify any one factor as dispositive,
and each Board member may have attributed different weights to the factors considered.
Analysis of Nature,
Extent, and Quality of Services Provided to the Fund. The Board considered information provided
to it at the meeting and in previous presentations from representatives of the Adviser regarding the
nature, extent, and quality of the services provided to funds in the BNY Mellon fund complex, including
the fund. Representatives of the Adviser noted that the fund is a closed-end fund without daily inflows
and outflows of capital and provided the fund’s asset size.
The Board also considered
research support available to, and portfolio management capabilities of, the fund’s portfolio management
personnel and that the Adviser also provides oversight of day-to-day fund operations, including fund
accounting and administration and assistance in meeting legal and regulatory requirements. The Board
also considered the Adviser’s extensive administrative, accounting and compliance infrastructures,
as well as the Adviser’s supervisory activities over the Sub-Adviser.
Comparative Analysis
of the Fund’s Performance and Management Fee and Expense Ratio. The Board reviewed
reports prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider
of investment company data based on classifications provided by Thomson Reuters Lipper (“Lipper”),
which included information comparing (1) the performance of the fund’s Common shares with the performance
of a group of general and insured municipal debt leveraged closed-end funds selected by Broadridge as
comparable to the fund (the “Performance Group”) and with a broader group of funds consisting of
all general and insured municipal debt leveraged closed-end funds (the “Performance Universe”), all
for various periods ended May 31, 2023, and (2) the fund’s actual and contractual management fees and
total expenses with those of the same group of funds in the Performance Group (the “Expense Group”)
and with a broader group of funds consisting of all general and insured municipal debt leveraged closed-end
funds, excluding outliers (the “Expense Universe”), the information for which was derived in part
from fund financial statements available to Broadridge as of the date of its analysis. The Adviser previously
had furnished the Board with a description of the methodology Broadridge used to
36
select the Performance Group and Performance Universe and the Expense Group and
Expense Universe.
Performance Comparisons. Representatives of the Adviser stated
that the usefulness of performance comparisons may be affected by a number of factors, including different
investment limitations and policies and the extent and manner in which leverage is employed that may
be applicable to the fund and comparison funds and the end date selected. The Board also considered
the fund’s performance in light of overall financial market conditions. The Board discussed with representatives
of the Adviser and the Sub-Adviser the results of the comparisons and considered that the fund’s total
return performance, on a net asset value basis, was above the Performance
Group and Performance Universe medians for all periods, except the one-year period when the fund’s
total return performance, on a net asset value basis, was below the Performance
Group and Performance Universe medians. The Board also considered that the fund’s total return performance,
on a market price basis, was above the Performance Group and Performance Universe medians for all periods,
except the ten-year period when the fund’s total return performance, on a market price
basis, was below the Performance Group and Performance Universe medians. The Board also
considered that the fund’s yield performance, on a net asset value basis, was
below the Performance Group for seven of the ten one-year periods and below the Performance Universe
medians for eight of the ten one-year periods ended May 31. The Board also considered that the fund’s
yield performance, on a market price basis, was below the Performance Group for six of the ten one-year
periods and below the Performance Universe medians for nine of the ten one-year periods ended May 31.
The Board considered the relative proximity of the fund’s performance to the Performance Group and/or
Performance Universe medians in certain periods when performance was below median. The Adviser also
provided a comparison of the fund’s calendar year total returns (on a net asset value basis) to the
returns of the fund’s benchmark index, and it was noted that the fund’s returns were above the returns
of the index in three of the six calendar years shown. The Board noted that the fund had a four star
rating for each of the three-, five- and ten-year periods and a four star overall rating from Morningstar
based on Morningstar’s risk-adjusted return measures.
Management Fee and Expense Ratio Comparisons.
The Board reviewed and considered the contractual management fee rate payable by the fund to the Adviser
in light of the nature, extent and quality of the management services and the sub-advisory services provided
by the Adviser and the Sub-Adviser, respectively. In addition, the Board reviewed and considered the
actual management fee rate paid by the fund over the fund’s last fiscal year. The Board also reviewed
the range of actual and contractual management fees and total expenses as a percentage of average net
assets of the Expense Group and Expense Universe funds and discussed the results of the comparisons.
The Board considered that the fund’s contractual management fee was higher than
the Expense Group median contractual management fee, the fund’s actual management fee based on common
assets and leveraged assets together, was higher than the Expense
37
INFORMATION ABOUT THE RENEWAL OF THE FUND'S MANAGEMENT AND
SUB-INVESTMENT ADVISORY AGREEMENTS (Unaudited) (continued)
Group median and the Expense Universe median actual management fees and, based
on common assets alone, was higher than the Expense Group median and the Expense Universe median actual
management fees, and the fund’s total expenses, based on both common assets alone and on common assets
and leveraged assets together, were higher than the Expense Group and the Expense Universe median total
expenses.
Representatives
of the Adviser reviewed with the Board the contractual management or investment advisory fees paid by
funds advised by the Adviser that are in the same Lipper category as the fund (the “Similar Funds”),
and explained the nature of the Similar Funds. They discussed differences in fees paid and the relationship
of the fees paid in light of any differences in the services provided and other relevant factors, noting
that the fund is a closed-end fund. The Board considered the relevance of the fee information
provided for the Similar Funds to evaluate the appropriateness of the fund’s management fee. Representatives
of the Adviser noted that there were no separate accounts and/or other types of client portfolios advised
by the Adviser or the Sub-Adviser that are considered to have similar investment strategies and policies
as the fund.
The Board considered the fee payable to the Sub-Adviser in
relation to the fee payable to the Adviser by the fund and the respective services provided by the Sub-Adviser
and the Adviser. The Board also took into consideration that the Sub-Adviser’s fee is paid by the
Adviser, out of its fee from the fund, and not the fund.
Analysis of Profitability and Economies
of Scale. Representatives of the Adviser reviewed the expenses allocated and profit received
by the Adviser and its affiliates and the resulting profitability percentage for managing the fund and
the aggregate profitability percentage to the Adviser and its affiliates for managing the funds in the
BNY Mellon fund complex, and the method used to determine the expenses and profit. The Board concluded
that the profitability results were not excessive, given the services rendered and service levels provided
by the Adviser and its affiliates. The Board also had been provided with information prepared by an
independent consulting firm regarding the Adviser’s approach to allocating costs to, and determining
the profitability of, individual funds and the entire BNY Mellon fund complex. The consulting firm also
had analyzed where any economies of scale might emerge in connection with the management of a fund.
The Board considered, on the advice of its counsel, the profitability analysis
(1) as part of its evaluation of whether the fees under the Agreements, considered in relation to the
mix of services provided by the Adviser and the Sub-Adviser, including the nature, extent and quality
of such services, supported the renewal of the Agreements and (2) in light of the relevant circumstances
for the fund and the extent to which economies of scale would be realized if the fund grows and whether
fee levels reflect these economies of scale for the benefit of fund shareholders. Representatives of
the Adviser stated that, because the fund is a closed-end fund without daily inflows and outflows of
capital, there were not significant economies of scale at this time to be realized by the Adviser in
managing the fund’s assets. Representatives of the Adviser also stated that, as a result of shared
and allocated costs among funds in the BNY Mellon fund complex, the extent of
38
economies of scale could depend substantially on the level of assets in the complex
as a whole, so that increases and decreases in complex-wide assets can affect potential economies of
scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the
fund’s asset level. The Board also considered potential benefits to the Adviser and the Sub-Adviser
from acting as investment adviser and sub-investment adviser, respectively, and took into consideration
that there were no soft dollar arrangements in effect for trading the fund’s investments.
At
the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information
to make an informed business decision with respect to the renewal of the Agreements. Based on the discussions
and considerations as described above, the Board concluded and determined as follows.
· The Board concluded that the nature, extent and quality of
the services provided by the Adviser and the Sub-Adviser are adequate and appropriate.
· The Board was satisfied with the fund’s relative performance.
· The
Board concluded that the fees paid to the Adviser and the Sub-Adviser continued to be appropriate under
the circumstances and in light of the factors and the totality of the services provided as discussed
above.
· The
Board determined that the economies of scale which may accrue to the Adviser and its affiliates in connection
with the management of the fund had been adequately considered by the Adviser in connection with the
fee rate charged to the fund pursuant to the Management Agreement and that, to the extent in the future
it were determined that material economies of scale had not been shared with the fund, the Board would
seek to have those economies of scale shared with the fund.
In evaluating the Agreements,
the Board considered these conclusions and determinations and also relied on its previous knowledge,
gained through meetings and other interactions with the Adviser and its affiliates and the Sub-Adviser,
of the Adviser and the Sub-Adviser and the services provided to the fund by the Adviser and the Sub-Adviser.
The Board also relied on information received on a routine and regular basis throughout the year relating
to the operations of the fund and the investment management and other services provided under the Agreements,
including information on the investment performance of the fund in comparison to similar funds and benchmark
performance indices; general market outlook as applicable to the fund; and compliance reports. In addition,
the Board’s consideration of the contractual fee arrangements for the fund had the benefit of a number
of years of reviews of the Agreements for the fund, or substantially similar agreements for other BNY
Mellon funds that the Board oversees, during which lengthy discussions took place between the Board and
representatives of the Adviser. Certain aspects of the arrangements may receive greater scrutiny in
some years than in others, and the Board’s conclusions may be based, in part, on their consideration
of the fund’s arrangements, or substantially
39
INFORMATION ABOUT THE RENEWAL OF THE FUND'S MANAGEMENT AND
SUB-INVESTMENT ADVISORY AGREEMENTS (Unaudited) (continued)
similar arrangements for other BNY Mellon funds that the Board oversees, in prior
years. The Board determined to renew the Agreements.
40
OFFICERS
AND DIRECTORS
BNY Mellon Municipal Bond Infrastructure Fund, Inc.
240 Greenwich Street
New
York, NY 10286
| | | |
Directors | | Officers (continued) | |
Joseph S. DiMartino,
Chairman | | Assistant
Treasurers (continued) | |
Francine J. Bovich | | Robert Salviolo | |
J. Charles Cardona | | Robert Svagna | |
Andrew J. Donohue | | Chief Compliance Officer | |
Isabel P. Dunst | | Joseph W. Connolly | |
Nathan Leventhal† | | Portfolio
Managers | |
Robin
A. Melvin | | Jeffrey
Burger | |
Roslyn
M. Watson | | Thomas
C. Casey | |
Benaree
Pratt Wiley† | | Daniel A. Rabasco | |
Gordon
J. Davis†† | | | |
Tamara Belinfanti†† | | Adviser | |
† Elected by holders of RVMTPS | | BNY Mellon Investment
Adviser, Inc. | |
†† Advisory Board Member | | Sub-Adviser | |
Officers | | Insight North America
LLC | |
President | | Custodian | |
David DiPetrillo | | The Bank of New York
Mellon | |
Chief
Legal Officer | | Counsel | |
Peter M. Sullivan | | Proskauer
Rose LLP | |
Vice
President and Secretary | | Transfer
Agent, | |
James Bitetto | | Dividend
Disbursing Agent | |
Vice Presidents and Assistant Secretaries | | and Registrar | |
Deirdre Cunnane | | Computershare Inc. | |
Sarah S. Kelleher | | (Common Stock) | |
Jeff Prusnofsky | | The Bank of New York Mellon | |
Amanda Quinn | | (RVMTP Shares) | |
Joanee Skerrett | | Stock Exchange Listing | |
Natalya Zelensky | | NYSE Symbol: DMB | |
Treasurer | | Initial SEC Effective Date | |
James Windels | | 4/26/13 | |
Vice Presidents | | | |
Daniel Goldstein | | | |
Joseph Martella | | | |
Assistant Treasurers | | | |
Gavin C. Reilly | | | |
The fund’s net asset value per share
appears in the following publications: Barron’s, Closed-End Bond Funds section under the heading
“Municipal Bond Funds” every Monday; The Wall Street Journal, Mutual Funds section under the heading “Closed-End
Funds” every Monday. |
Notice is hereby given
in accordance with Section 23(c) of the Act that the fund may purchase shares of its common stock in
the open market when it can do so at prices below the then current net asset value
per share. |
41
BNY
Mellon Municipal Bond Infrastructure Fund, Inc.
240
Greenwich Street
New York, NY 10286
Adviser
BNY Mellon
Investment Adviser, Inc.
240 Greenwich Street
New York, NY 10286
Sub-Adviser
Insight
North America LLC
200 Park Avenue, 7th Floor
New York, NY 10166
Custodian
The Bank of
New York Mellon
240 Greenwich Street
New York, NY 10286
Transfer
Agent &
Registrar (Common Stock)
Computershare Inc.
480 Washington Boulevard
Jersey City, NJ 07310
Dividend Disbursing Agent (Common Stock)
Computershare
Inc.
P.O. Box 30170
College Station, TX 77842
For more information about
the fund, visit https://im.bnymellon.com/closed-end-funds. Here you will find the fund’s most recently
available quarterly fact sheets and other information about the fund. The information posted on the fund’s
website is subject to change without notice.
The fund files its complete schedule of portfolio holdings
with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The fund’s Forms
N-PORT are available on the SEC’s website at www.sec.gov.
A
description of the policies and procedures that the fund uses to determine how to vote proxies relating
to portfolio securities and information regarding how the fund voted these proxies for the most recent
12-month period ended June 30 is available at www.im.bnymellon.com
and
on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.
The
fund posts regularly certain information at https://im.bnymellon.com/closed-end-funds,
including certain asset coverage and leverage ratios (within 5 business days of the last day of each
month) and a fact sheet containing certain statistical information (within 15 business days of the last
day of each month).
| |
0805SA0823
| ![](https://www.sec.gov/Archives/edgar/data/1565381/000156538123000012/img_3c63c1468ac84.jpg)
|
Not applicable.
| Item 3. | Audit Committee Financial Expert. |
Not applicable.
| Item 4. | Principal Accountant Fees and Services. |
Not applicable.
| Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
(a) Not applicable.
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers. |
Not applicable.
| Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material
changes to the procedures applicable to Item 10.
| Item 11. | Controls and Procedures. |
(a) The
Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure
controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures
are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized
and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files
or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal
financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There
were no changes to the Registrant's internal control over financial reporting that occurred during the period covered by this report that
have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
| Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by
the undersigned, thereunto duly authorized.
BNY Mellon Municipal Bond Infrastructure Fund, Inc.
By: /s/ David J. DiPetrillo
David J. DiPetrillo
President (Principal Executive Officer)
Date: October 23, 2023
Pursuant to the requirements of the Securities Exchange
Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant
and in the capacities and on the dates indicated.
By: /s/ David J. DiPetrillo
David J. DiPetrillo
President (Principal Executive Officer)
Date: October 23, 2023
By: /s/ James Windels
James Windels
Treasurer (Principal Financial Officer)
Date: October 20, 2023
EXHIBIT INDEX
(a)(2) Certifications of principal
executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)
(b) Certification
of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)
[EX-99.CERT]—Exhibit (a)(2)
SECTION 302 CERTIFICATION
I, David J. DiPetrillo, certify that:
1. I have reviewed this report on Form N-CSR of
BNY Mellon Municipal Bond Infrastructure Fund, Inc.;
2. Based on my knowledge,
this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge,
the financial statements, and other financial information included in this report, fairly present in all material respects the financial
condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement
of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other
certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such
disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;
(b) Designed such
internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c) Evaluated the
effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation;
and
(d) Disclosed in this
report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other
certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors
(or persons performing the equivalent functions):
(a) All significant
deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely
to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether
or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial
reporting.
By: /s/ David
J. DiPetrillo
David J. DiPetrillo
President (Principal Executive Officer)
Date: October 23, 2023
SECTION 302 CERTIFICATION
I, James Windels, certify that:
1. I have reviewed this report on Form N-CSR of
BNY Mellon Municipal Bond Infrastructure Fund, Inc.;
2. Based on my knowledge,
this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge,
the financial statements, and other financial information included in this report, fairly present in all material respects the financial
condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement
of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other
certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such
disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;
(b) Designed such
internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c) Evaluated the
effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation;
and
(d) Disclosed in this
report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other
certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors
(or persons performing the equivalent functions):
(a) All significant
deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely
to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether
or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial
reporting.
By: /s/ James
Windels
James Windels
Treasurer (Principal Financial Officer)
Date: October
20, 2023
[EX-99.906CERT]
Exhibit (b)
SECTION 906 CERTIFICATIONS
In connection with this report
on Form N-CSR for the Registrant as furnished to the Securities and Exchange Commission on the date hereof (the "Report"), the
undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) the
Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable; and
(2) the
information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the
Registrant.
By: /s/ David
J. DiPetrillo
David J. DiPetrillo
President (Principal Executive Officer)
Date: October
23, 2023
By: /s/ James
Windels
James Windels
Treasurer (Principal Financial Officer)
Date: October
20, 2023
This certificate is furnished pursuant to the requirements of Form N-CSR
and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the
liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or
the Securities Exchange Act of 1934.
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