Securitisation

The Royal Bank of Scotland Corporate & Institutional originates and executes a wide range of structured capital markets transactions, including securitisation. This generally involves financing a ring-fenced pool of assets, or a business, with recourse only to the cashflow from and value of the securitised assets.

Deals can be public or private and will usually be rated by external agencies. Investor demand for securitisation paper is typically more stable and reliable than other forms of capital markets financing.

Securitisation is frequently used as part of a broader financing package, and the Corporate & Institutional securitisation team works with other product areas in the Bank to deliver packaged solutions combining a broad range of financing tools.

Key features and benefits:

• Funding raised has limited recourse to securitised assets
• A wide range of assets are suitable - trade and finance receivables, loans, mortgages, bonds, property and equipment leases
• Stable businesses with low technology threat and high barriers to entry can also be securitised including pubs, water utilities, private hospitals, care homes and shopping malls
• For certain assets, AAA rated debt can be raised irrespective of the rating of the originating company
• Can often be the most cost-effective funding solution
• High levels of gearing possible
• Offers borrowers an opportunity to diversify their sources of funding

Please read the important legal information.