Securitisation of an Activity

The Securitisation Law allows an activity and the risks/income linked to this activity to be securitised.

A company holds rights related to a specific activity, such as the activity of renting out aircrafts to third parties (or any other product: future commissions, consumer credits, recurrent commercial activity, leasing of goods, vehicles, ships, etc.)

The company can securitise this activity by transferring ownership of future income resulting from aircraft rental to a securitisation vehicle. The company will obtain a price that will depend on the value of the transferred asset and on the discount of potential income from the activity linked to management of this asset.

External investors finance the purchase of the aircraft and receive securities in exchange for their investment. All income received from the leasing, after deduction of relevant fees, will be paid to the securitisation vehicle and, after deduction of operational fees, will constitute the profits deriving from this activity.

Each investor will therefore receive income in proportion to the number of securities held.

Holders will be able to give, return, assign, transfer or sell these securities to other holders. These will be paid profits related to this activity and upon settlement, the possible profit related to the sale of the aircraft.