A Malta Limited Partnership under the form of a securitisation vehicle was implemented to securitise US shares by way of issuance of convertible notes to US institutional investors.
The Securitisation Act (Cap 484 of the laws of Malta ) provides for a large variety of corporate and non-corporate forms, under which a Maltese securitisation vehicle can be set up: a company, including an investment company, a commercial partnership, a trust created by written instrument or any other legal structure which the competent authority may permit to be used for a securitisation transaction. Particularly interesting is the option to implement non-corporate transparent vehicles, which are yet bankruptcy-remote.
The securitisation vehicle is taxed according to the provisions of the Income Tax Act (Cap 123 of the laws of Malta) applicable to the chosen form of vehicle. However, specific Securitisation Transaction (Deductions) Rules are in place pursuant to which extensive deductions apply, provided that certain conditions are fulfilled.
The Malta Financial Services Authority and the Central Bank have to be notified before the securitisation vehicle commences its business. A public securitisation vehicle, which intends to issue financial instruments to the public, requires a licence under the Securitisation Act.
The securitisation vehicle proves as a flexible and efficient vehicle, which is able to accommodate various business and legal considerations in the context of cross-border transactions.