In another move aimed at leveraging its processing systems, Bank of New York has agreed to acquire the municipal bond administration business of New Orleans-based Hibernia National Bank for an undisclosed sum.

The deal covers some 350 municipal bond trustee and agency relationships representing more than $2.7 billion in securities, composed primarily of appointments for municipal bond issuers in the Louisiana market.

The transaction, announced Tuesday, is expected to close during the second quarter. It will be immediately accretive to earnings, Bank of New York said.

Bank of New York has been rapidly expanding its securities administration operations, mainly by buying such activities from smaller banks, in an effort to boost the volume of transactions it puts through its own systems.

This is the sixth such acquisition by Bank of New York over the past 14 months. The deals have boosted the bank's corporate trust business by 12% to more than 23,000 trust and agency appointments, or relationships, and more than $300 billion of all types of securities under administration.

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