Z Securitisation

„YOUR TRUSTED PARTNER FOR SECURITISATION“

Z Securitisation is a bank independent and insolvency protected Securitisation Platform in Luxembourg based on the Securitisation Law of 22 March 2004, as amended. Our securitisations can be defined as the solution between initiator and investor requirements and the regulatory framework.

Since the implementation of the Luxembourg Securitisation Law of 22 March 2004, a amended ("Securitisation Law"), the Luxembourg securitisation market has developed significantly. The Luxembourg legislature has managed to create a modern framework that offers initiators and institutional investors a high level of flexibility and comprehensive insolvency protection mechanisms. This means in detail: In addition to the permissibility of all asset classes and securitisation instruments, our clients are now offered the option of creating a separate Compartment (cell) within Z Securitisation SA. This means that the assets contributed to its Compartment are independent of Z Securitisation SA and of its other Compartments and thus. In addition, the respective Compartments are subject to be reviewed by a local auditing firm and have to meet corresponding organisational duties. Luxembourg has ensured transparent and unambiguous legal certainty for institutional investors as well as reliability within the securitisation market and has established itself in recent years as the most attractive securitisation market in Europe.

BENEFITS OF A SECURITISATION

Securitisation of assets offers our clients a variety of benefits, depending on their design:

The Luxembourg Securitisation Law stands for flexibility and legal certainty.  Z Securitisation SA is a Securitisation Platform for institutional clients with the aim of realising individual Securitisation concepts.

1

Transformation of illiquid (real) assets into clearable securities

2

Improving the ability to raise capital

3

Diversification and reorientation of funding sources, investor base and transaction structures

4

Efficient access to the capital markets

SECURITISATION OVERVIEW

Securitisable assets

The Luxembourg Securitisation Law does not impose any restrictions on the basis of assets that can be securitised.
Z Securitisation SA andstructure and implement securitisations by setting up Compartments. We aim to accompany our initiators and the institutional investors individually and holistically throughout the entire securitisation process.
The possibilities of securitisation are broad. Basically, any tangible and intangible asset can be securitised with sufficiently determinable values or future cash flows, such as: 


Investor protection

There 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. 

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, Securitisation Vehicles and it’s Compartments benefit in principle from a large number of Luxembourg double taxation treaties.

Equity Investments
Loans
Insurance Policies
Bond Investments
Rights and Claims
Commodities
Mortages
Receivables
Mezzanine Capital

Our Services

Structuring a Securitisation

We are the right partner if you want to create your own Securitisation. Together with our Calculation and Administration Agent (Servicer), we realise your strategy in a tailor made Securitisation Structure. After successful structuring, our Servicer will take care of the entire setup and ongoing administration of your Compartment. And you have a free hand for a successful management of the underlying and the distribution of the Compartment.

A Securitisation 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 securitisation is a transaction in which a securitisation 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 securitisation and the requested timing of the transaction. Based on these requests, we initiate the creation and establishment of the Compartment. Afterwards, our servicer executes the entire administration and calculation duties.

Vehicle structure

Compartments are ringfenced structures with no legal personality under a securitisation platform setup under the Luxembourg Securitisation Law. Compartments can issue a variety of securities and could be setup as fully clearable or in a registered form. Compartments issued by Z Securitisation SA and administered by PSI Services SA are for (semi-)institutional 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.

Structure Chart


Z Securitisation – Securitisation Platform

Compartment Overview

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