Securitisation / Security Trustee
Securitisation is the creation of asset-backed securities that are backed by a stream of cash flows. The borrower issues debt securities that are repaid using only these cash flows. In this kind of arrangement, assets to be securitised are sold to a special purpose vehicle (SPV), thus isolating the ultimate borrower from any claims for repayment. The SPV then issues bonds or other debt instruments. The SPV then uses the money raised by issuing the debt securities to pay the ultimate borrower for the assets.
Liontrust understands the complexity and intricacies of such an arrangement. We have the technical experience and expertise to execute these forms of niche financing. As an independent trust company that is not owned or controlled by any financial institution, we are able to act independently and impartially as a securitisation trustee.
In other types of securities back financing arrangements, Liontrust, as a security trustee, will hold the pledged securities on behalf of lenders and thus safeguarding their interest.
Bond Trustee
As a bond trustee, Liontrust would collectively represent the bond holders who have invested their monies and ensure that the interests of the bond holders are protected by monitoring the bond issuer of its compliance to its obligations as set out in the trust deed.
Liontrust will advise the bond issuer, amongst others, on the appointment of arrangers, providing guidance on the structured payment, clarification on legal/statutory matters in the issuance of the bonds, documentation process, registration, and compliance of legal and statutory requirements.
Independent Escrow Agent Services
As an independent trust company, Liontrust is well suited to act as escrow agent. Liontrust will ensure that terms of the escrow agreement are complied with by all contracting parties. Liontrust as escrow agent will ensure that money and/or assets held under escrow arrangement are properly received and disbursed, with the timing of such disbursement being dependent on the performance by the parties on the contractual provisions that have been agreed upon.