{{ languageVal }}
  • English
  • French (Canada)
 

Deals

Maples Group Supports Major Investment Banks on Landmark Luxembourg Securitisation

03 Feb 2021

The Maples Group is pleased to announce that a multi-disciplinary team in its Luxembourg office recently supported three major investment banks in the largest diversified payment rights (DPR) securitisation of cross-border remittance flows in Latin America to date.

The Group's Luxembourg law firm acted as Luxembourg legal counsel to BCP Securities, LLC, Credit Suisse (Securities) LLC and Jefferies Group LLC (the "Initial Purchasers"), while the Luxembourg fiduciary services team provided domiciliation, directorship and accounting services.

The Initial Purchasers purchased notes issued by a Luxembourg special purpose vehicle (the "SPV") for the principal amount of US$500 million. The notes are collateralised by receivables originated by Mexican appliances retailer, Nueva Elektra del Milenio S.A. de C.V. ("Elektra") in the context of its money transfer business.  In 2019, reimbursement based money transfer transactions for Elektra represented approximately US$9 billion in remittances.

The legal team, led by Partner and head of Luxembourg Finance, Arnaud Arrecgros, structured and set up the SPV, provided legal, tax and regulatory advice, negotiated the transaction documents and acted as the listing agent for the listing of the notes issued by the SPV on the Securities Official List of the Luxembourg Stock Exchange.

Following the team's advice, the SPV was set up as a securitisation fund in the form of a fiduciary estate, which is tax transparent, does not have legal personality and the features of which are often compared to those of a trust.  Although rarely used, this type of vehicle is becoming increasingly popular in Luxembourg, as it has proven to be very resilient in a constantly changing regulatory environment.

Commenting on the transaction, Arnaud said, "It was a pleasure to contribute to this innovative and technically challenging transaction, which truly demonstrates our comprehensive capabilities and expertise in structured finance transactions in Luxembourg.  This complex transaction also showcased our ability to adapt to new and evolving legislation and case law challenges, some of which arose during the course of the negotiations." 

In addition to Arnaud, the legal team comprised Associate, Maurice Honnen, as well as Tax Principal, James O'Neal and Associate, Rui Duarte.  On the fiduciary side, the team was led by Senior Vice President, Constanze Schmidt, who was supported by Vice Presidents Anika Oberbillig and Christian Klar.

 

Related Services

Finance

Advising on the laws of the BVI, the Cayman Islands, Ireland, Jersey and Luxembourg, our global Finance team provides expert legal advice on even the most complex financial transactions under intense time pressure. Clients repeatedly return to our qualified finance lawyers to handle a variety of complex matters relating to acquisition and leveraged financing, asset finance, banking, debt capital markets, derivatives, fund finance, insurance linked products, Islamic finance, repackaging and structured finance. 

Tax

Our market leading Tax team is at the forefront of innovation in developing new structures and strategies for international and Irish clients on cross-border tax matters. 

Accounting Tax and Agency Services

The Maples Group supports client mandates with services that address accounting, bank accounts administration, financial reporting and external audit and tax coordination and filing requirements for a variety of investment funds, structured finance entities and special purpose vehicles.

Company Secretarial & Board Support Services

Through the provision of a comprehensive range of company secretarial and board support services, we work closely with clients to help reduce administrative burdens to allow them to focus on their core business objectives

Directorship Services

As independent oversight requirements dominate the investment world, our directors bring unmatched technical expertise and an understanding of legal and compliance burdens to add value to the governance process.