Capital Markets

Zeta has incorporated it’s own Securitisation Cell Company


Zeta has incorporated it’s own SCC by the name of Pomegranate SCC p.l.c. We promote Pomegranate to third parties who may be looking to undertake a securitisation transaction without incurring additional time and costs required for the purposes of incorporating, setting up and maintaining a dedicated securitisation vehicle or an SCC.

To this end, Pomegranate offers a securitisation cell platform with a robust and dependable internal management structure comprising directors having the requisite knowledge and experience in securitisation business and working closely with third party service providers as may be required to secure maximum efficiencies and compliance.

Securitisation

Securitisation is the process of taking an illiquid asset, or group of assets, running them through a complex process of financial engineering and turning them into a security, which is a financial instrument that holds some type of monetary value.

Illiquid assets that can be securitized include loans, such as mortgages, goods, or liabilities. Though illiquid, these generate a predictable cash flow, or the promise of future cash flow. Securitisation turns these assets into securities and then sells them on to investors.

The Process of Securitisation

Typically, the process is started when the Originator transfers these assets, known as “securitisation assets” to another party, called the “Securitisation Vehicle” (SV) against consideration or payment. The SV uses its acquisition to create financial instruments and then offers them to the public on markets pertinent to the instrument in question.

Securitisation and Malta

Malta offers a favourable environment for securitization, one that has enjoyed the support of governments and authorities for a long time. Malta drafted specific legislation to make Malta an extremely competitive jurisdiction for securitisation.

Malta offers many possibilities to SVs for achieving tax neutrality. There are no undue burdens and regulations on Originators and a number of protections for the same. The SV itself is covered by a number of protections limiting action and litigation. There is no limitation on what may consist of an asset suitable for securitisation through securitisation transfers or instruments issued by SVs must exceed €1,000,000.

Given such benefits, Malta’s reputation as a hospitable climate for securitization has grown dramatically, and Malta is now reportedly the fastest growing securitisation jurisdiction in the EU.


Zeta

Zeta provides consultancy and multiple services to any businesses and individuals interested in investing in securitisation and related projects.  

Contact Zeta today for further information.