Types of Securities issued
Notes and Bonds
Any type of bonds or notes can be issued by a Luxembourg securitisation SPV:
yielding a fixed interest rate or variable interest
notes linked with an underlying asset
Notes or bonds are debt instruments issued by the securitisation undertaking with yield and value which depends on the securitised assets/risks/cash flow. Zero coupon bonds can also be issued and may be redeemable periodically or at the end of the securitisation process.
Shares and units
The issuance of shares or units to investors can be used to raise capital for the SV in exchange for providing the Client equity.
In such a case, the investors usually receive debt note convertible at some time in the future to equity.
Each SV may issue different categories of shares, with or without voting rights and warrants attached to each share issued. The shares may be tracking a specific asset or a future proceed.
Such shares or units may receive an ISIN number and be accepted in the clearing systems.
SV - CIC Securitisation platform
A Tracker certificate is commonly used by a Luxembourg securitisation SV, its promoter, a trust or, a manager to issue a debt certificate which is linked with specific Client assets.
It can be useful to tranche large assets or a position into different slices which are then subscribed by investors.
The asset linked with the Tracker Certificate can be:
A share in an investment fund or a private equity deal
Real estate, plane, fleet
A loan, a bond, a receivable
Financial assets, shares, bonds or any securities
A collection of art
A future cash flow, IP or copy right
A wrapper is commonly used by an investor, a trust or a promoter to structure a pool of assets into one single security.
It can be useful to hold several types of assets by subscribing to one single certificate instead of holding or subscribing to different securities. The SV cannot undertake any risk. The main categories of instruments which may be securitised and placed into the wrapper are:
Any tangible assets