Fleet and machinery securitization converts physical operating assets into a security. The identified equipment is transferred to a compartment of a Luxembourg SPV that the law ring-fences, and the note issued from it, under its own ISIN, is served by the lease or usage payments those assets generate.
Fleet and equipment tie up capital in assets that work but cannot be moved. MTCM sets up a compartment in one of its six Luxembourg SPVs, ring-fenced by law, to hold the register, and that compartment issues the note, under an ISIN of its own. The compartment holds a defined asset register, and the payments due under the leases or usage contracts fund the note. Its ring-fence comes from the Luxembourg Securitization Law of 22 March 2004, and because the compartment is bankruptcy remote the assets are insulated from the operator’s insolvency. The platform keeps GSK Stockmann as its legal counsel, with audits by PwC and Atwell.
Held in custody, transferred or listed like any other security.
Segregated by law from every other transaction on the platform.
Protection runs in both directions.
The exposure leaves the originator’s balance sheet.
Commercial aircraft, business jets, helicopters and aviation equipment.
Vessels, workboats and yachts under identified charter or usage contracts.
Trucks, lorries, vans and delivery fleets on lease or contract hire.
Car fleets, taxi and mobility fleets under managed arrangements.
Locomotives, wagons and metro or tram equipment.
Excavators, cranes, bulldozers and heavy plant.
Tractors, harvesters and specialist farming equipment.
Production lines, tooling, carriers and movable plant.
Imaging systems and other healthcare devices on long-term contracts.
Servers, network hardware and office technology under lease.
It converts physical operating assets into a security. The equipment is transferred to a compartment ring-fenced by Luxembourg law, and the note issued against it, under its own ISIN, is served by the lease or usage payments the assets generate.
No. The assets stay in operation and the operator continues to run them. What changes is who holds the exposure: the compartment holds the assets or the payments due on them, and the note distributes that exposure to investors.
Aircraft, vessels, commercial and passenger vehicles, rail and rolling stock, construction and agricultural machinery, industrial plant, medical equipment and IT hardware, where the assets are individually identifiable and used under contract.
It is decided at structuring. Under an operating lease the residual sits with the compartment and the note usually carries a balance at maturity. Under a finance lease it is effectively passed to the lessee and the note amortises fully over the term.
The insurance arrangements are set when the compartment is structured, including who is named as loss payee and how proceeds reach the compartment. The audit verifies that the cover is in place before the note is issued.
Leasing companies and asset finance providers that need to transfer exposure, operators with capital tied up in equipment, and the investors that want asset-backed exposure in custody-eligible form.
| Operating lease | Finance lease | |
|---|---|---|
| Who expects to own the asset at the end | The lessor | The lessee |
| Residual value | Sits with the compartment | Effectively passed to the lessee |
| Note amortisation | Partial, with a residual at maturity | Fully amortising over the term |
| What the audit focuses on | Asset condition and resale market | Lessee standing and payment history |
80+ active compartments · €2.5 bn+ assets structured. Indicative platform figures.