Luxbond Green Fund SLP

Luxbond Green Fund SLP is the focused investment vehicle for companies engaged in environmentally supportive businesses, such as alternative renewable energy, green transport, and sustainable living in Asia. We are particularly specialized on the investment for the renewable power plant such as Biomass Power plant and Solar Power plant. We help the owner or the share holders of the renewable power plant, who want to monetize their investment, using the Asset-backed security bond issuing.

Asset-backed security

An asset-backed security (ABS) is a security whose income payments and hence value are derived from and collateralized (or "backed") by a specified pool of underlying assets. The pool of assets is typically a group of small which are unable to be sold individually or illiquid assets like a power plant.

Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets. The pools of underlying assets can include common payments from auto loans, and mortgage loans, to cash flows from power plant operation, royalty payments and movie revenues. Normally, investors would like to return on their investment for a renewable energy power plant as quickly as possible for the next investment.

In that case, power plant share holders could issue the ABS Security with cash flows from power plant operation, pledging the shares of the renewable energy power plant.

Luxbond Green Fund SLP CYCLE