Asset Backed Commercial Paper Programmes (ABCP) consist of a bankruptcy-remote special purpose vehicle owned by a foundation or a charitable trust that issues the Commercial Paper and uses the proceeds to obtain interests in various types of assets, either through direct asset purchase or through secured lending transactions.

ABCP represent short tem debt of generally less than 270 days’ maturity and are issued on a discount basis. Credit enhancement can be achieved through the type and credit quality of the underlying assets. The rating applicable to the programme may also determine if full or partial liquidity is required to support the conduit, which is generally provided by the sponsor.

ABCP can be further distinguished as:

• a Single Seller programme - where the programme sponsor is the sole originator of the financial assets.
  
  
• a Multiseller Programme - where the programme sponsor is generally a financial institution which is seeking to provide financing alternatives to its clients and purchases a variety of financial assets from many different sellers.
  
  
• a Hybrid Programme - where the programme sponsor is generally a financial institution which is seeking to provide both financing alternatives to its clients uses its expertise to exploit arbitrage opportunities.  This will normally involve investing in large pools of rated asset-backed securities.

Ogier has experience in all three types of ABCP and can provide the following services to ensure the successful administration and running of the programme:-

Services

• Incorporation of SPVs, ICCs and PCCs (and further cells once incorporated).
  
  
• Establishment of charitable trusts, foundations and limited partnerships.
  
  
• Registered office, registered agent, secretarial and registrar services.
  
  
• Provision of directors (individual or corporate) and trustees.
  
  
• Bookkeeping and preparation of financial statements.
  
  
• Cash management and treasury services.
  
  
• Agent for service of process.
  
  
• Escrow / nominee services.
  
  
• General corporate administration services.