securitisation overview

Since the entry into force of the Luxembourg Securitisation Law of 22 March 2004 (“Securitisation Law“), the Luxembourg Securitisation Market has experienced significant growth. The Luxembourg legislator has successfully established an effective framework that provides institutional investors with considerable flexibility and extensive procedures for insolvency protection.

One notable development is that institutional investors can now create a ring-fenced Compartment within a Securitisation Platform, in addition to the eligibility of all asset classes and Securitisation Instruments. This Compartment enables assets contributed to be protected from the platform and other Compartments. In addition, the respective Compartments are periodically audited by a recognised auditing firm and have corresponding organisational obligations.

As a result, Luxembourg has established transparent and effective legal certainty for institutional investors and reliability within the Securitisation Market, making it the most attractive Securitisation Market in Europe, if not in the world.

SECURITISABLE ASSETS

In terms of Securitisable Assets, the Luxembourg Securitisation Law does not impose any restrictions based on the type of asset that can be securitised.

A Service Company structures and implements Securitisations by setting up Compartments. We provide individual and comprehensive support to our initiators and institutional investors throughout the entire Securitisation Process.

The possibilities of Securitisation are broad, as any tangible and intangible asset with sufficiently determinable values or future cash flows can be securitised such as: 

 

  • Commodities
  • Equity investments
  • Loans
  • Receivables of all kinds
  • Mortgages
  • Insurance Policies
  • Bond Investments
  • Mezzanine Capital
  • Rights and Claims
  • and others

 

 

Our goal is to assist you in finding the optimal solution for your Securitisation needs. We offer ongoing Administration and support services from a team of experienced administration and calculation agents. Additionally, we can create customised reporting solutions to meet your specific needs.

Our structured processes and personalised approach enable us to effectively meet your Securitisation Requirements, ensuring that your goals and objectives are met.

INVESTOR PROTECTION

Investor protection is of utmost importance to us, and we ensure a high level of protection for investors with Issuer default protection. We also offer the use of a depository bank and trustee, and investors‘ rights and obligations are limited to their specific Compartment (ring-fenced). In addition, a separate liquidation of a Compartment is possible.

FISCAL TREATMENT

In terms of fiscal treatment, our Securitisation Vehicles and its Compartments benefit from almost complete tax neutrality. This means that a Compartment is treated beneficially from a tax point of view, and all payments made in relation to issued securities (whether bonds or shares) are fully tax-deductible expenses for the Compartment. Moreover, our Securitisation Vehicles and Compartments benefit from a large number of Luxembourg double taxation treaties.