Tier 1 Capital structures comprise special purpose vehicles that are directly owned subsidiaries of financial institutions. The SPV will issue notes that do not have a fixed maturity date and are not redeemable at the option of the noteholder. The proceeds of the issued notes will be either loaned directly to the financial institution or used to acquire a Eurobond issued by a subsidiary of the financial institution in an appropriate tax efficient location to provide the required cashflow.

The Tier 1 Capital Ratio is the ratio of a financial institution’s core equity capital to its total assets and is often seen as a measure of its ability to sustain future losses. The definition of core equity capital normally includes instruments that cannot be redeemed at the option of the holder. Tier 1 Capital structures therefore assist financial institutions in meeting international and central bank capital requirements.

Ogier has experience in establishing and administering these structures and can provide the following services in this respect:-

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.