Securitisation

Funding secured against assets

• Access to a new source of funds, particularly long and medium term
• Access to lower cost funding than may be available to the originator
• Access to international capital markets
• Improved liquidity
• Off-balance sheet treatment, if desired, which can provide increased return on reported assets and equity

Realising the value of your assets

Securitisation is an alternative form of funding to bank debt. Identifiable assets are isolated from the credit risk of the originator of the assets, for example, loans and receivables or company cash flow. The purchaser of these assets then uses the cash flows from them to support the issuance of debt securities in order to fund the original purchase.

Characteristics of typical securitisation transactions include:

• Reliance on the performance of the asset pool (and not the credit quality of the originator) for re-payment of finance costs and debt borrowings;
• Insulation from exposure to originator event risk;
• Liquidity and hedging facilities to manage cashflows; and
• Formal credit rating of the transaction.

Competitively-priced solutions

With asset securitisation from Bank of Scotland Treasury, you deal with a single point of contact throughout – a dedicated Relationship Manager who will know your business and be able to offer you insightful advice at crucial times. Naturally, every securitisation we arrange is unique to the business involved, ensuring you benefit from a deal that maximises your business benefit.