Financial trust, collateral structures and securitization

By BKM | Berkemeyer

Martin Carlevaro, specialist in charge of the infrastructure and APPs practice in BKM, anchored a webinar focused on financial practices and structures, and the development of new investment trends in Paraguay.

Carlevaro, with more than 20 years of experience advising on contractual, regulatory, corporate, finance and M&A matters in infrastructure and energy sectors at an international level, was joined by specialists from international expansion experts TMF Group and growth capital investment First Capital Group.

The speakers talked about different kinds of trusts and financing structures, highlighting new products with an exponential growth that with better cost rates and contracts terms are a challenge for traditional banking mechanisms. Among them, Carlevaro mentioned securitization, which in essence is the financing or re-financing of income yielding assets by packaging them into a tradeable form through an issue of bonds or other securities. Securitisation allows originators to dispose of assets in an efficient way, and to achieve a more beneficial financing profile and better funding terms. It also allows investors to invest in assets, which they otherwise could not access and has greatly contributed to the availability of highly rated bonds to investors. Thus securitisation is a highly efficient tool for diversification for investors and originators alike.

Currently BKM advises several foreign financial institutions operating in the region on debt restructuring, securitization, and on bankruptcy and insolvency proceedings, providing assistance with negotiations, concessions, licenses and drafting of contracts.