As people know, our firm has been one of the most active companies for listing shares and bonds globally. We also have worked with asset holders for the creation of Safe Keeping Receipts which firms intend on utilizing for trading or leverage of the assets for loans and the release of capital called Monetization. Generally the process of creating an SKR includes:
- Creation of a securitization vehicle, registration with an ISIN of the certificates of beneficial ownership, trust indenture, and deposit with a Bank
- Sending the message via Swift MT 799 or Swift MT 760 to the receiving Bank for the monetization or loan against the underlying assets of the SKR
The average cost of this process is 25,000 GBP for the formation and securitization that creates the SKR, and anywhere between 50,000 – 100,000 euro for the Swift message of the blocked funds or assets held by the financial institution. One of the pitfalls of this process, is the cost of the Swift is every time you intend on working with a co-responding Bank for monetization, your take on the Swift costs and await the transaction to be accepted or completed by the receiving Bank.
If you are looking for an SKR you can always apply at www.safekeepingreceipts.com
How do we solve this problem with Cyprus Stock Exchange Listings?
The Cyprus market allows for us to create a low-tax structure that ends up being the company that your assets are securitized into. The securitized assets are placed in trust with the Cyprus company. The Cyprus company, through our list of trustees and relationship with the Cyprus stock exchange, allow for the securitization company to issue Bonds as a private company onto the Cyprus Stock Exchange with the registrar and trustee managing the process through our firm. Naturally, the Bond has an ISIN number and can clear into any brokerage house or Bank globally through direct transfer via the clearing and settlement of the Bond. You as the Bond holder can deposit the bonds within a brokerage account we will set-up for you, and then transfer the bonds to the purchasing party. The bonds can be used directly for loans, leverage, and or for sale to financial institutions as a listed bond versus going through the process of sending Swift messages which are costly for deals that do not get financed. In addition, there are secondary markets such as the European Wholesale Debt market and Frankfurt 2nd Quotation board, creating liquidity and an immediate market for your otherwise illiquid assets.
The Cyprus securitization structure, clearing and settlement, registrar, brokerage account, company, listing, nomads sponsorship fees, tax advice, legal advice, and monetization consulting ends up costing no more than 60,000 euro. With the ease and ability to transfer the security, the cost ends up being half the overall fees generally incurred from an SKR, which has no secondary liquid market accept for private trading platforms, which are generally long and arduous processes to access. Therefore, the Bond structure that we have developed is clearly a winner for people trying to leverage assets, monetize illiquid assets, or who want to use their assets without putting them at risk or diluted from equity investment.
If you are interested in turning your assets into debt instruments that can be monetized, you should be considering our packaged Bond listing.
*Please note one of the hidden benefits of the Cyprus Bond structure we have developed is that when you sell the Bonds and make profit from the capital, it is done so directly through a low tax zone versus a higher tax zone like the UK, Canada, US, etc. In addition, Cyprus is not an offshore jurisdiction, it is a low-tax jurisdiction, which means you are the owner of the business do not have to would that if you live in a region that requires disclosure of offshore jurisdiction companies or may not be permitted by your region, this is acceptable to your tax departments via specific treaties that enable its use.
We do not give Tax or Legal advice, however, we have partnered with a Tax Auditor and Advisor with over 6,000 companies within this region who trust their advice and structures. You can contact us and become one of those many firms that globally are taking advantage of one of the most intelligent structures there is for your business.