| Newsletter : June 2020 Using Luxembourg for raising capital
Creatrust has developed a turnkey solution for small and medium size companies to allow them to raise capital through the issuance of bonds/notes and certificates. This solution allows companies to raise capital through private placement and choose between a large range of flexible method of financing such as: fixed or variable interest-bearing bonds, annual, bi-annual or quarterly interest payments, profit participating note, zero coupon bonds, actively managed certificates, convertible note into equity, Preferred Equity Certificates, etc. The demand for bonds/notes and certificates issuance has grown significantly over the last years as companies seek to identify alternative sources of financing. Whether it is for existing debt or to finance new ventures or acquire a new company, companies can now issue debt even from as low as EUR 1 million or the equivalent in any currency. Investors are looking for yield in a low interest environment and looking for attractive debt issuances. An example would be the issuance of a Note through a securitisation vehicle to a foreigner company in order to invest directly into a real estate project. The investors would subscribe to this securitization vehicle’s Note which would able to raise capital to finance the project. With Creatrust such issuance can be set-up in a matter of 1-2 weeks as a one-off or recurrent way to attract investors. Please find out more about this by sharing your project contact us SLP Family Trust
Family Offices may use this flexible vehicle to structure the holding of their wealth by bringing all or part of their assets into such a SLP. The SLP can be incorporated to the benefit of a family. It can play the role of private holding entity in a flexible and tax friendly framework. The member of the oldest / first generation (founder) brings his assets in kind to the SLP who will issue different types of shares, one category of shares per generation. Each Member of the Family receives one category of share with different right on the assets of the SLP and voting rights. The provision of the SLP as a Family trust can be adapted to match all the needs of the members of the family. Any types of assets can be brought or held by the SLP: Real estate Financial instruments Currencies, commodities Collectibles (artworks, cars, jewelry etc) Shares, funds, derivatives, … Loans, bonds, notes, Intellectual properties, And any assets held by the family In order to find out more about the SLP Family trust please contact us Tokenization of Green energy project
As many companies try to tackle the environment issue, green energy project has become widely popular across industries over the last year. Hence in order to launch their project, some promoters are also using Luxembourg securitisation entities. The rationale for a securitisation lies in the opportunity issuing a note, a bond or a certificate representing the future cash flow linked with the IPR and obtaining the NPV (Net present value) of such future income streams today. Hence transforming the future income streams into an immediate cash flow by selling to third party investors part of their future rights. Such Note can also be tokenized and sold/exchanged on the blockchain. In the case of tokenization, the Luxembourg SPV will issue tokens linked directly with the specific green energy project(s). Investors would subscribe into the SPV in order to obtain the dedicated tokens. The Distributed Ledger Technology has become viral these last years in Luxembourg and a proper management of green energy project on the blockchain is now considered as a must have for promoters and investor worldwide. In order to find out more about the tokenization of green energy project please contact us Our Creatrust Previous News Please find out about our previous publications here Crypto-Fund, Cryptocurrency, ICO, Blockchain & Token in Luxembourg Hedge Fund and Fintech - The limits of Machine Learning and Artificial Intelligence and why human oversight is still important Create your own Tracker Certificate in Luxembourg Bond Listing Markets in Luxembourg Sustainable, Responsible and Impact investing Cayman on Blacklist - limitations on the deduction of payments made to blacklisted countries Swing Pricing for Luxembourg Funds due to Covid-19 Tokenization of intellectual property via securitization | 