Background
On 8 June 2026, draft law No. 8761 amending the amended law of 22 March 2004 on securitisation (the “Securitisation Law”) (the “Draft Law”) was submitted to the Luxembourg Parliament.
While the Securitisation Law was already substantially modernised in 2022 to align with market practice, the Draft Law seeks to further strengthen Luxembourg's competitiveness vis-à-vis other European jurisdictions. The reform is primarily intended to increase structuring flexibility, enhance legal certainty and accommodate evolving financing techniques.
Key amendments
Extended financing techniques
The 2022 reform had already broadened the financing possibilities available to securitisation undertakings by recognising, in addition to the issuance of financial instruments, the possibility of funding transactions through "borrowings".
