Jersey is one of the world’s leading centres for the establishment of structured finance vehicles, including vehicles for repackaging programmes, other securitisations, capital market debt and hybrid capital issues and other forms of securities issues. Volaw Group’s Structured Finance team has been involved in establishing and administering a significant number of finance vehicles that have been involved in a range of transactions. Our innovative approach has resulted in some notable firsts, including:
- The first transaction through a Jersey vehicle requiring a credit rating from Standard & Poor’s
- The first repackaging through a Jersey SPV of German Post Office bonds
- The first Islamic securitisation of US commercial property leasehold interests
- Several issues of Tier 1 capital by commercial banks
- A securitisation of trade receivables by a regional electricity company.
Our specialist team is dedicated to looking after the affairs of structured finance vehicles under our administration by providing the following services:
- Providing directors and officers
- Organising the issue of securities
- Maintaining the statutory records and registers
- Filing statutory returns with the JFSC
- Keeping proper accounting records
- Preparing annual or other regular financial statements
- Organising the audit of the financial statements
- Preparing and distributing regular or ad hoc reports to investors
- Providing a trustee of any trust owning the vehicle.
Asset-Backed and Repackaging Transactions
Volaw Group’s Structured Finance team has gained experience in asset-backed and repackaging transactions since the late 1980s, when it assisted with several transactions to re-package German Post Office bonds. Other transactions in which we have been involved include securitising a portfolio of credit default swaps, setting up SPEs to repackage bonds issued by the Republic of Venezuela, and issuing debt instruments backed by equivalent underlying assets, but relying upon arbitrage of the yield curve and ratings to secure an improved return for holders of its note and equity.
Hybrid Capital and Debt Issuance Vehicles
Volaw has assisted in establishing and managing a number of SPEs involved in issuing securities to raise hybrid capital or issue debt securities for their parent or associated companies.
Defeasance transactions have been used by many companies as a method of amortising write-downs on receivables over a period of years, however, there are many complex legal, accountancy and tax issues involved and so it is important that legal, accountancy and tax advice is taken at an early stage in any planning. Volaw Group has assisted in establishing and managing a number of SPEs that have been used for defeasance transactions.