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Using ADGM SPVs for securitisation transactions
This episode is also available as a blog post: https://10leaves.ae/publications/adgm/adgm-spvs-as-securitisation-vehicles
What are the benefits of setting up a securitisation vehicle in the ADGM?
In the ADGM, securitisation of a wide range of assets, loans, bonds, incomes and risks is allowed. In addition to this, risks related to debt, movable or immovable property, tangible and intangible assets are also allowed to be securitised.
In general, anything that is a store of future income can be securitised in the ADGM.
The ADGM SPV is governed by Common Law, and it’s direct applicability in the ADGM provides legal certainty and comfort to foreign investors. SPVs also have access to the ADGM Courts, which provides a mechanism for registration and enforcement of contracts, again under Common Law.
There are no restrictions on foreign ownership in the ADGM, and so ADGM SPVs can issue 100% of it’s securities and shares to foreign nationals.
The ADGM SPV is a low-cost and flexible vehicle. There are no office-space requirements (the services of an ADGM registered agent would suffice), and multiple classes of shares are allowed.
Also, an ADGM SPV has access to the extensive Double Taxation Avoidance Treaty Network that the UAE has in place with most major countries around the globe. In this case, there are additional requirements to fulfil from the Ministry of Finance.
The ADGM is a zero-tax jurisdiction and there are no corporate, withholding or income taxes in the centre. 100% of the profits of an ADGM SPV can be repatriated.
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By 10 LeavesThis episode is also available as a blog post: https://10leaves.ae/publications/adgm/adgm-spvs-as-securitisation-vehicles
What are the benefits of setting up a securitisation vehicle in the ADGM?
In the ADGM, securitisation of a wide range of assets, loans, bonds, incomes and risks is allowed. In addition to this, risks related to debt, movable or immovable property, tangible and intangible assets are also allowed to be securitised.
In general, anything that is a store of future income can be securitised in the ADGM.
The ADGM SPV is governed by Common Law, and it’s direct applicability in the ADGM provides legal certainty and comfort to foreign investors. SPVs also have access to the ADGM Courts, which provides a mechanism for registration and enforcement of contracts, again under Common Law.
There are no restrictions on foreign ownership in the ADGM, and so ADGM SPVs can issue 100% of it’s securities and shares to foreign nationals.
The ADGM SPV is a low-cost and flexible vehicle. There are no office-space requirements (the services of an ADGM registered agent would suffice), and multiple classes of shares are allowed.
Also, an ADGM SPV has access to the extensive Double Taxation Avoidance Treaty Network that the UAE has in place with most major countries around the globe. In this case, there are additional requirements to fulfil from the Ministry of Finance.
The ADGM is a zero-tax jurisdiction and there are no corporate, withholding or income taxes in the centre. 100% of the profits of an ADGM SPV can be repatriated.