Media ININ Economy We Trust
Media In / Riyadh 22 January 2019
The Saudi Capital Market Authority license for the first special purpose entity ( “master Finance”) for the issuance of debt instruments backed by assets in accordance with the rules governing special-purpose facilities issued by the Commission.
This license is the first of its kind in the Kingdom to establish a special purpose entity for practicing the issue of debt instruments where the entity has the financial right and the independent legal personality, and the establishment ends with the purpose for which it was established.
One of the most important objectives of establishing a special purpose entity is to obtain financing through an alternative source of bank loans and financial institutions by issuing debt instruments through a special purpose entity and transferring assets to the entity to convert asset-related risks or restricting some debt- The financial statements of the entity rather than the patron of the entity or its owners, and the protection of the rights of investors (holders of debt instruments) from the bankruptcy of entities associated with the enterprise as the sponsors or owners.
