Law and Practice

1. Market

1.1 Major Lender-side Players

The Luxembourg market is particular in the sense that international groups as well as investors have chosen Luxembourg as a European financial centre specialising in serving international clients and investors. Luxembourg's sense of innovation has also made it an important jurisdiction for start-ups becoming the target of acquisitions.

Luxembourg is also a prime jurisdiction for debt, credit and opportunities funds and major players in acquisition financing, and is an important player in sustainable finance.

Luxembourg corporate structures in international acquisitions are therefore very common, generally for reasons of innovation, efficient structuring, corporate law and the availability of specialised vehicles, as well as the stability, and the local know-how in respect to holding structures, international financing transactions and investment funds. Other reasons for the importance of international acquisition financing in Luxembourg are the efficiency of the available collateral package and the Luxembourg stock exchange/Euro MTF in respect to debt capital.

As a result, the major players active in the Luxembourg lending market are truly international and include international banks, Luxembourg and foreign debt or credit funds, and more and more local banks or lending vehicles.

1.2 Corporates and LBOs

Similar to the very international character of the major players on the lending side, there is a mixture of international corporate financing and leverage acquisition financing implemented through Luxembourg.

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Originally published in Chambers Global Practice guide.

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