Structured Finance / Asset Securitisation
At UOB, we have helped many businesses raise capital using both traditional and alternative methods. Asset securitisation is one of these alternative methods. It is becoming a favoured financing technique because it turns your financial assets into financing vehicles and reduces credit risks.
Asset securitisation involves the sale of debt securities backed by the cash flows from a pool of financial assets such as loans or leases. Typically, these assets are held in a legal entity - for example, a trust or a special holding entity - that is separate from the company sponsoring the securitisation. This transfers the credit risk of the securities to the holding entity.
Taking advantage of asset securitisation requires the services of a bank knowledgeable and experienced in securities laws, securitisation structures and the nature and characteristics of the assets to be securitised. Our team at UOB Corporate Banking has the expertise and the experience. Tell us your needs and leave the rest to us.
- Security issued by the SPV may enjoy higher credit rating than long term credit rating of the originator, hence lowering cost
- Provides the originator with an alternative form of funding at a lower cost
- Improves the originator's ability and flexibility in managing its balance sheet
- Allows match-funding by asset classes