SECURITIZATION
A securitization transaction represents a limited number of tradable and/or non-tradable assets that are bought by a Compartment respectively transferred by a transferor to the Compartment. This means that a securitization is a transaction in which a securitization vehicle, acting in the name and behalf of a specific Compartment, acquires risks related to certain claims or assets and finances this by issuing securities (bonds, notes, shares, profit participation rights, etc.) whose returns are linked to those risks.
The Compartment issues the corresponding securities, which is priced with the value of the underlying assets and from the payments and income received (e.g. interest, dividends, rents, charter rates).
ANALYSIS OF CUSTOMER REQUIREMENTS
The individual requests of our institutional clients serve as a profound basis for our services. Together with our clients, we analyse the key terms and conditions of the securitization and the requested timing of the transaction. Based on these requests, we initiate the creation and establishment of the Compartment.
VEHICLE STRUCTURE
Compartments are ringfenced structures with no legal personality under a securitization platform setup under the Luxembourg Securitization Law.
Compartments can issue a variety of securities and could be setup as fully clearable or in a registered form.
Compartments issued by H Capital Securitization SA and administered by our Servicer are for professional
investors, and therefore do not require approval from the Luxembourg Financial Markets Authority (Commission de Surveillance du Secteur Financier („CSSF“)). An approval would only be required if securities are issued to the public on a continuous basis.
ADMINISTRATION OF SECURITIZATION
After successful structuring of your securitization ideas, we also gladly provide our expertise in the administration of your Compartment. To ensure smooth and professional administration, we rely on the cooperation with recognised service partners.
Our service package includes among others:
- Security pricing with flexible pricing sources
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Preparation of all required legal documents
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Organisation of payment transactions as well as the subscription and redemption process
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Buying and / or Selling of underlyings
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Strict cost control through investment controlling and best execution approach
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Regulatory reporting
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Individually customised reports
BENEFITS OF SECURITIZATION
The Luxembourg Securitization Law stands for flexibility and legal certainty. H Capital Securitization SA is a
securitization platform for institutional clients with the aim of realising individual securitization concepts.
Securitization of assets offers our clients a variety of benefits, depending on their design:
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Access to Capital Markets
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Lower Cost of Capital
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Risk Transfer & Protection
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Retention of AUM & Fee Growth
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Customizable Investor Offering
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Scalability & Replicability
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Global Distribution & Recognition
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Innovation & Flexibility
PROVEN METHODOLOGY
Ideal issuance model
01
Luxembourg
The Luxembourg Securitization Law does not impose any restrictions on the basis of assets that can be securitized.
H Capital Securitization SA implements securitizations by setting up Compartments. We aim to accompany our initiators and the institutional investors individually and holistically throughout the entire securitization process.
02
Securitisable Assets
The possibilities of securitization are broad. Basically, any tangible and intangible asset can be securitized with sufficiently determinable values or future cash flows, such as: Commodities, Equity investments, Loans Receivables of all kinds, Mortgages, Insurance Policies, Bond Investments, Mezzanine, Capital Rights and Claims etc.
03
Investor Protection
here is a high level of investor protection and Issuer default protection. The use of depository bank and trustee are possible. The investors‘ rights and obligations are limited to their specific Compartment (ringfenced). In addition, a separate liquidation of a Compartment is possible.
04
Fiscal Treatment
There is almost complete tax neutrality, i.e. a Compartment is treated beneficial from a tax point of view. All payments made by the Compartment in relation to issued securities (be they bonds or shares) are fully tax-deductible expenses for the Compartment. Furthermore, securitization vehicles and it’s Compartments benefit in principle from a large number of Luxembourg double taxation treaties.
Issuance Focused
> $1B
Assets under Issuance
> 500
Issuance variations across sectors, jurisdictions, asset types etc.
> 5
Continents coverage for issuances and settlement
