The rate of new companies putting asset-backed funding in place has remained at a similiar level to previous years, with a further seven companies making asset-backed contributions with a total value of over £500m.
Over the past year we have seen that:
- The market continues to develop, with the first structures put in place by a charity, a regulated utility company, and a cooperative.
- There is further innovation with the use of loan notes backed by assets, allowing these assets to be used as security even when they cannot be transferred into the asset-backed funding structure.
- The complexity of these transactions, necessitating co-ordinated pensions, tax and accounting advice, means that they remain the preserve of the large accounting firms who have advised on all the structures implemented to date.