Luxembourg as a platform for Corporate Finance

Luxembourg's corporate finance proposition rests on concentration: firms are able to keep multiple parts of cross-border corporate finance in the same jurisdiction.

A group can raise bank debt, centralise treasury, issue and list bonds, access fund financing and securitise portfolios without rebuilding its legal and servicing framework for each channel.

This allows for continuity: holding and financing entities, collateral, bank relationships, listing infrastructure and post-trade servicing can remain in place as the financing changes over the life of a transaction.

Luxembourg’s financial ecosystem

Different entities use Luxembourg's platform for different reasons.

INVESTMENT FUNDS

Pool institutional capital into PE, infrastructure, real estate, private debt and other strategies – a direct channel for corporate finance.

  • SUBSCRIPTION FINANCE
  • NAV FINANCE
  • ASSET-BASED FINANCE

BANKS & FINANCIAL INSTITUTIONS

Underpin the platform through lending, custody, settlement, banking and intermediation.

  • CUSTODY
  • SETTLEMENT
  • TRANSACTION BANKING

OPERATING COMPANIES

Banking & financial services for loans, working capital, payments, guarantees, treasury and investment needs.

  • LOANS
  • WORKING CAPITAL
  • TREASURY
  • GUARANTEES

INTERNATIONAL GROUPS

Holding, financing & treasury structures for cash pooling, inter-company finance, acquisitions and cross-border operations.

  • CASH POOLING
  • INTERCO FINANCE
  • ACQUISITIONS

ISSUERS

Access international debt markets via LuxSE, the leading venue for cross-border bond listings and debt instrument lifecycle support.

  • BONDS
  • LUXSE
  • GREEN FINANCE

SECURITISATION VEHICLES

Ring-fenced structures for asset-backed finance, risk transfer, investor distribution and capital markets transactions.

  • ABS
  • RISK TRANSFER
  • CLO

PRIVATE DEBT FUNDS VEHICLES

Direct lending to companies, sponsors and projects. Luxembourg RAIFs and SCSps are the preferred structures for these strategies.

  • RAIF
  • SCSP
  • DIRECT LENDING

Operating companies use Luxembourg banks for loans, working-capital facilities, payments and guarantees. International groups often place holding, financing and treasury entities in Luxembourg so cash pooling, intercompany lending, acquisition vehicles and shareholder funding run through one European layer.

Investment funds are the largest presence and use the market on both sides of the balance sheet. Funds borrow through subscription, NAV and asset-based facilities, while private debt funds use Luxembourg vehicles, often RAIFs and SCSps, to lend directly to companies, sponsors and projects.

Securitisation vehicles isolate receivables, loan portfolios and other exposures in ring-fenced structures. Issuers use LuxSE to access international debt markets, while Clearstream, LuxCSD and the wider post-trade chain handle settlement, custody, servicing and collateral. Banks provide the lending and transaction-banking capacity underneath these activities.

The financing channels

Bank financing ranges from bilateral relationship loans to syndicated facilities, supported by payments, FX and treasury services. Capital-market funding can be listed on LuxSE through bonds, EMTN programmes, structured notes or sustainable debt, with Clearstream handling settlement and custody after issuance.

Fund finance changes with the fund: subscription and capital-call lines rely on investor commitments; NAV and asset-based facilities rely on the portfolio; hybrid facilities bridge the two. Private debt reverses the relationship by using Luxembourg funds to originate or acquire loans. Securitisation converts defined exposures into instruments that can be financed or sold to investors.

These channels use much of the same legal, banking and servicing infrastructure. Firms can move from one source of capital to another without relocating the underlying structure or rebuilding the operational chain in another jurisdiction.

WHY LUXEMBOURG

Together, these capabilities position Luxembourg as a corporate finance platform: a place where financing channels, legal structures and market infrastructure can be combined for cross-border transactions.

Cross-border structures

SOPARFIs, SCSps, RAIFs and compartmentalised securitisation undertakings can be used within the same transaction, allowing ownership, fund structures and ring-fenced exposures to be organised under one legal system.

Cross-border banking

Approximately 70% of corporate lending by Luxembourg banks is cross-border, so corporate and institutional teams are built around multinational borrowers, sponsor structures and multi-country refinancing.

Debt-market infrastructure

LuxSE provides the listing venue while Clearstream provides international settlement, custody, servicing and collateral infrastructure from the same jurisdiction.

Fund finance and private credit

The fund sector is both a borrower and a source of corporate credit, supporting subscription and NAV finance on one side and direct lending on the other.

Financial collateral

Lenders can take security over shares, accounts and receivables under a regime that permits direct enforcement and gives qualifying collateral strong protection in insolvency.

EU base with real reach

Single-market access through one regulated jurisdiction, so a structure built once can be distributed across the bloc.

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