Luxembourg Securitisation Vehicles

Introduction

The Law of March 22, 2004, on securitisation (the "Securitisation Law") has been amended by legislation of February 25, 2022, intended to promote the flexibility of securitisation vehicles and to enhance the attractiveness of Luxembourg for securitisation. Here we will set out the main features of Luxembourg's securitisation regime and explain the flexibility and opportunities offered by the amended Securitisation Law.

What is securitisation under luxembourg law?

The Securitisation Law defines the process of securitisation as the acquisition or assumption, directly or through another undertaking, of risks associated with receivables, other assets or liabilities assumed by third parties or inherent in all or part of the activities carried out by third parties, and the issue of financial instruments or the use of any form of borrowing whose value or yield depends on those risks.