Securitization of Assets
Securitization of Assets refers to a process whereby a company creates a unique financial instrument by combining a number of individual assets into a security. By subsequently selling off different tiers of such repackaged debt instrument to the investors, the company gains access to larger funding to finance its expansion projects.
Although a relatively new concept in Bangladesh, such a product has great potential given the market of Bangladesh, and such products are greatly favored by multilateral financial institutions for being further developed to suit the needs of our corporate clients.
However, smooth creation and subsequent management of such instruments require full regulatory and legal support, which are in the process of being structured to help financial institutions carry out such operations.