Country Writer: Mr. Andrew Moon

andrew.moon@maplesandcalder.com

Maples & Calder

Tel:+  345 949 8066
www.maplesandcalder.com


SECURITIZATION LAWYERS AT THIS FIRM

Follow links for articles (Latest ones appear first):

Articles:
Protecting the offshore corporate veil - The importance of respecting the corporate integrity of offshore special purpose vehicles Uploaded August 12, 2003

Cayman Islands Securitisation Uploaded June10, 2003

Asset Finance - The rationale for the establishment of the Cayman Islands as the principal jurisdiction for the establishment of offshore ower/lessor/securitisation vehicles and a description of the offshore arrangements. Uploaded June10, 2003

An Overview of Capital Markets Transactions in the Cayman Islands Uploaded June10, 2003

“Will further crackdowns in the Offshore Centres really assist the fight against money laundering post September 11th?"

THE IMPORTANCE OF RESPECTING THE CORPORATE
INTEGRITY OF SPECIAL PURPOSE VEHICLES POST ENRON

THE CAYMAN ISLANDS-SPECIAL PURPOSE VEHICLES AND AIRCRAFT FINANCING STRUCTURES

CORPORATE INTEGRITY AND DIRECTORS' DUTIES IN STRUCTURED FINANCE TRANSACTIONS

Structured Debt in the Cayman Islands: Use of Special Purpose Companies

FIRM PROFILE

Maples and Calder is the largest law firm in the Cayman Islands and has practised Cayman Islands law for more than 30 years.  It opened affiliated offices in Hong Kong in 1995 and London in 1997 in order to develop greater proximity with the firm's client base and to provide time zone sensitive advice. 

There are now over 300 lawyers and staff worldwide and advice is given to leading international and domestic law firms, major financial institutions and high net worth clients although solely in relation to Cayman Islands law.  Specialisations cover a wide area and include banking, capital markets, structured debt, securitisation, asset financing, captive insurance, international equity offerings and listings, mutual and hedge funds, venture capital, commercial and private trust and commercial and trust litigation. The firm also offers a highly specialised management service to structured finance transactions through its controlling interest in QSPV Limited and QSPV (Jersey) Limited, licensed trust company administrators of Cayman Islands debt-issuing special purpose vehicles.

SECURITIZATION MARKET STATEMENT

The Cayman Islands is one the worldÍs leading offshore financial centres and has become the first choice location for all types of structured finance transactions offering the key legal elements such as a creditor-friendly legal system, recognition of foreign law governed security interests and no income, profits, capital gains or withholding tax, that arrangers, issuers and investors require.  The Cayman Islands bankruptcy remote vehicle is now well-established and many transactions are AAA rated by the rating agencies.  S&P has recently published specific Cayman Islands legal criteria for special purpose entities.

In the high volume repackaging market, the number of repackaging issues through repackaging MTN programmes continues to grow, particularly issues of credit linked notes.  In addition, the Cayman Islands is the jurisdiction of choice for CDO transactions, accounting for over 500 CDO issuers, many issuing equity in addition to debt, with an increase in the synthetic CDO market.  The securitization market has also continued to develop more complex structures with not only an increased diversity of assets being securitised but with Cayman Islands vehicles being used in an increasing variety of roles in addition to issuer, such as intermediary, servicer or originator, the latter being particularly useful where using a Cayman Islands SPV as originator is able to overcome the local law requirements which may make the sale of receivables or true sale analysis difficult.

The market for securities issued by Cayman Islands vehicles has been strengthened by the Cayman Islands being one of the first offshore jurisdictions to be cleared by both the OECD and FATF.

Article provided by:  Rebecca Steller
 Partner, Maples and Calder rebecca.steller@maplesandcalder.com