GlobalABCP allows large Panamanian private companies (Debtors), which have local investment grade issued by an international risk rating agency such as Moody’s, Standard and Poor’s or Fitch, indirect access to the international short-term money market (money market) of a year or less.
About Us
What We Offer
Debtors guarantee the issuance of Swiss Debt Securities for less than one year, typically Commercial Papers or Commercial Papers Backed by certified accounts receivable from their suppliers (Asset Backed Commercial Papers), which are sold to non US and non Canadian Institutional Investors around the world, through a GlobalABCP Special Purpose Vehicle.
Suppliers benefit from selling their certified accounts receivables through Early Payment Discount at a total cost lower than what a bank or factoring company charges them.
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Debtors receive free additional credit days, between 30 to 90 additional days, for a total of maximum 180 days.
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If the Debtors have excess liquidity, they can continue to pay their accounts payable in the usual time and receive 50% of the profit margin of the interest spread, as a bonus for being forced to pay the trust irrevocably on a fixed date.
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Investors receive higher annual returns than other short-term alternatives for the same level of risk.
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Why Us?
Efficient business model
We disintermediate the factoring market and short-term business financing. We implement a more efficient business model that minimizes costs, times, requirements and paperwork for Debtors, Suppliers and Investors.
Low Fixed costs
We operate with fixed costs and profit margins much lower than those of banks and factoring companies, which allows us to charge less to Suppliers, pay more to Investors and share 50% of the profit with participating Debtors.
Transactions without tax
Transactions of ABCPs issued in Switzerland are considered exempt from income tax for Panamanian Investors, as they are from a foreign source. They also do not pay the financing tax (FECI) for being a Discount for Prompt Payment, not financing.
How it Works?
Swiss electronic financial market where ABCPs are traded backed by accounts receivable certified by public or private entities with investment grade, issued in local currency.
A special purpose vehicle, also called a special purpose entity (SPE), is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company guarantees its obligations even if the parent company files for bankruptcy. The GlobalABCP SPV is incorporated in Guernsey (a British Crown dependency located in the English Channel), governed under Swiss securities laws and is tax-free.
The Guernsey Financial Services Commission is the regulatory body for the finance industry in the Bailiwick of Guernsey. It seeks to secure good regulatory outcomes with integrity, proportionality and professional excellence, thereby generating confidence in the Bailiwick as a jurisdiction.
It is an independent public body funded entirely by the licensees that it regulates by charging them fees.
The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government entity responsible for regulating financial matters. This includes the supervision of banks, insurance companies, stock exchanges and brokerages, as well as other financial intermediaries in Switzerland. FINMA Switzerland’s primary function is to protect investors and maintain the integrity of the supervised securities markets.
The SPV may reject the admission of Institutional Debtors, Suppliers or Investors The SPV may reject admission of Debtors, Suppliers or Institutional Investors who do not comply with its Know Your Customer policies.
It is known who sells and buys, what quantities and at what prices, through Blockchain and Bloomberg.
The ISIN Organization offers management services related to International Title Identification Numbers (ISIN). ISIN uniquely identifies a security – its structure is defined in ISO 6166. The securities for which it is issued include securities, promissory notes, shares, and court orders. The ISIN code is a 12-character alphanumeric code. You can view it as a serial number that does not contain information to describe financial instruments but rather serves to uniformly identify a title for business and deal-signing purposes.