Investment Vehicles

The first sector of the Luxembourg financial industry to develop in the 1960s was the eurobond market.

Since then, Luxembourg has established itself as the global hub for large syndicated and bilateral loans in the eurozone. In addition to "classical" eurobonds, financing of all types is offered, including fiduciary operations and bonds conforming to Islamic Shariah law.

When financing major investment or implementing large international projects, it can be advantageous to use special financing structures. Luxembourg offers a wide range of special purpose vehicles that can be set up rapidly and with little bureaucracy.

The most frequently used structures are investment company with variable capital (SICAV), the common investment fund (FCP), the "société de participations financières" (Soparfi), the risk capital investment company (SICAR) and the securitisation vehicle.

These vehicles, which are often made to measure for the specific needs of a client, can have multiple uses, including project finance, real-estate or alternative investment, venture capital investment, management of holdings, capital market transactions or the management of patents and licence.