Clifford Chance

Forthcoming changes in the Luxembourg legislation governing securitisation vehicles

14 December 2021

Over recent years, the Luxembourg law dated 22 March 2004 on securitisation (the “Securitisation Law”) has proven a successful framework for a wide variety of securitisation, repackaging and financing transactions. On 12 May 2021, a bill (the “Bill”) was introduced with a view to making small, but important adjustments to the Securitisation Law and clarifying certain questions in the interest of legal certainty.

The main proposed innovations are a significant broadening of the financing techniques available to Luxembourg securitisation companies and a welcome clarification that the Securitisation Law can be used as a legal framework for structuring managed CLOs. In this article, we set out more detail on the Bill’s proposed changes and their market impact.

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