The expertise acquired by LIMA CAPITAL's teams makes it possible to implement securitisation projects of all kinds. Here are some examples of the most frequently performed securitisations.
Do not hesitate to contact us to share your context with us. We will be able to offer you relevant diagrams to achieve your objectives.
A natural or legal person owns movable property that is subject to hazards that he or she is unwilling or unable to control, such as an aircraft, vintage car, boat, etc.
It can then transfer this property to LIMA CAPITAL, which will have it financed by investors.
The natural or legal person thus receives cash in exchange for the sale of his property and no longer manages it. It no longer has to assume the risks associated with its detention.
The natural or legal person then pays rent to LIMA CAPITAL for the use of the goods.
A natural or legal person may transfer to LIMA CAPITAL the ownership of a building it owns or a right relating to that building, and if necessary reserve the right to occupy it for example until his death or for a specified period.
The right to the property is allocated to LIMA CAPITAL in consideration of the issue of registered shares or bearer bonds.
The beneficiary may transfer or sell these securities to other holders and the latter will receive income relating to their rights such as rents or capital gains on disposals.
This technique allows a group of investors to acquire, via LIMA CAPITAL, an important building without having to assume the investment alone. It also makes it easier to transfer a building to its successors.
A natural or legal person holds rights to an industrial or service activity, such as commission collection, recurring business activity, rental of goods, etc.
The natural or legal person may securitize this activity by transferring to LIMA CAPITAL ownership of the future income resulting from it.
External investors can finance the acquisition of the business and receive securities in return. The income generated by the activity, after deduction of expenses, will be distributed to the holders of the securities issued as part of the securitisation.
When a company has overdue receivables from third parties, the risk of non-recovery due to overdue due dates or to the debtors themselves will make the receivables non-repayable or only partially repayable.
A write-down or provision must then be recorded in the company's balance sheet in order to comply with accounting rules.
It is then possible to securitize these receivables with LIMA CAPITAL by transferring their ownership with the risk of non-recovery.
LIMA CAPITAL acquires the receivables at an agreed price taking into account a price reduction based on the risk of loss of the receivable.
The company thus divests itself of its risky assets by receiving a price, which is certainly lower than its nominal value, but which allows it to release cash that remained blocked.
LIMA CAPITAL, in its capacity as owner of the receivables, will collect all repayments as well as interest and fees.
A company may securitize risks of any kind, such as those related to external political, commercial or climatic events, or exchange rate risks, legal decisions, etc.
In order to guarantee the company's sustainability, it draws up a securitisation agreement with LIMA CAPITAL under which LIMA CAPITAL undertakes to assume alone, jointly or partially, the risks related to the occurrence or otherwise of the aforementioned events.
The company is thus relieved of the potentially negative consequences of taking this risk into account in its business. It transfers the risk and the corresponding potential expense to LIMA CAPITAL, which undertakes to reimburse it, in whole or in part, for the negative effects related to the occurrence of the event underlying the risk.
The risk is thus transferred to LIMA CAPITAL, which can obtain financing from external investors willing to bear the risk, i.e. to discount its occurrence. Investors receive securities or bonds in return.
If the risk occurs, LIMA CAPITAL pays the company compensation according to the terms of the contract. If it does not materialize, LIMA CAPITAL retains the premium paid by the company, thus constituting a result that will be distributed among the investors.
This ability to assume the broadest risks related to an activity carried out by a third party makes it possible to securitise many cases with LIMA CAPITAL: The occurrence of a political risk for exporters, the occurrence of climatic risks (sun, rain, drought, hail, snow, cold, hot), problems related to the successful completion of any type of contract, the occurrence of a choice made by a third party, a legislative change, a contract expiry date, a condition in a contract, a death, a bankruptcy, the outcome of an amicable or legal dispute, variations in raw material prices or exchange rate, etc.