WestLB Establishes Subsidiary in Luxembourg
Vivaldis will help boost sales of structured bonds and certificates and improve refinancing alternatives for savings banks
WestLB AG has established a securitisation company in Luxembourg. “Vivaldis – Gesellschaft für strukturierte Lösungen S.A.”, a wholly owned WestLB subsidiary, will issue structured securities under the investor-friendly Luxembourg securitisation law. The company holds a licence from the Commission de Surveillance du Secteur Financier and will be managed by senior executives of WestLB International S.A.
Vivaldis´ services are aimed at savings banks and banks seeking refinancing alternatives and wishing to boost their sales of structured bonds and certificates. The particular advantage for the financial institutions lies in the fact that – as with their own issues - the liabilities side of their balance sheet is strengthened. Private investors benefit from customised issue structures which are in part based on the securities issued by these financial institutions.
Christian Bonnen, Head of Treasury at Kreissparkasse Köln, said: “This model offers benefits to all involved. Vivaldis provides us with a strategic refinancing concept with which we can simply and flexibly borrow on-balance sheet funds. At the same time we are able to offer our customers attractive investment alternatives in the structured segment.”
Andreas Onkelbach, Head of Securities Business with the Savings Banks at WestLB AG, said: “For the WestLB Group the Vivaldis concept is an important addition to its range of products and services in the rapidly growing structured certificates business.” In the first half of 2005 alone, investments in derivatives in Germany rose 25 per cent to roughly € 60 billion, according to estimates by the Derivatives Forum, of which WestLB is a founding member. Added Onkelbach: “Vivaldis underscores WestLB´s status as a key player in this market.”