CSB Acting as Securitisation Trustee for MIDI’s Bond Issue

CSB Trustees & Fiduciaries Limited, a licensed Trustee company forming part of the CSB Group and regulated by the Malta Financial Services Authority (MFSA) in Malta is pleased to announce it will be acting as Securitisation Trustee for the MIDI p.l.c. 50 million secured bonds due 2026. Subscription to these bonds shall open on the 18^th July 2016 and close on the 20^th July 2016 unless fully subscribed earlier.

In its simplest form, a Securitisation Trust is an agreement between a Settlor and a Trustee (security trustee), whereby the Settlor would settle assets on trust with the Trustee in order to secure claims by creditors of the Settlor.

The most obvious advantage of this type of trust is that a Settlor would be able to raise capital through investment from numerous creditors without having to grant separate security to each and every creditor, thus avoiding engaging in an exercise which may prove not only complex, but also costly.

As one would expect by any securitisation vehicle, should the Settlor default in meeting any of its obligations towards its creditors, the Trustee of a Securitisation Trust would be empowered to liquidate the assets held under trust in order to satisfy the creditors’ claims.