ARTICLE
29 June 2017

Off-Balance Sheet Financing (Cayman)

W
Walkers

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We are a leading international law and professional services firm providing legal, corporate and fiduciary services to global corporations, financial institutions, capital market participants and investment fund managers. With a global presence spanning the Americas, Europe, the Middle East and Asia, we advise on the laws of Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, Ireland and Jersey. With over sixty years of looking at the world through the same commercial lens as our clients means we deliver focused, clear, precise advice to get the deal done. Clients trust us to help them make good business decisions, create commercially sound products and strategies, resolve disputes and cement deals that are profitable. From offices across geographies, we deliver business-critical advice and service in the same time zones as our clients, covering asset management, investment funds, corporate, M&A, dispute resolution, finance, insurance, fintech, private capital and trusts, regulatory and more
This memorandum examines the use of Cayman Islands off-balance sheet financing structures.
Cayman Islands Finance and Banking
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This memorandum examines the use of Cayman Islands off-balance sheet financing structures. There are several types of transactions that would call for an off-balance sheet structure, the two most common of which would be structured finance transactions and asset finance transactions. The off-balance sheet structure is designed to isolate the underlying assets from the control, and hence the bankruptcy risk, of third parties (eg the originator in a securitisation transaction or the airline in an aircraft finance transaction).

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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