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The benefit of a multi-jurisdictional European trustee


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Key takeaways

  • In an international market, issuers are active in various countries, which introduces an array of legal and structural considerations.

  • Increasingly, investors are leaning on their trustees to provide guidance and insights related to the assets they administer and the domains where those assets reside.

  • More than ever, clients need a service provider with the footprint, flexibility and country-specific expertise to support them wherever opportunities arise.

The European marketplace is still trying to find its footing after an extended period of rising interest rates and geopolitical uncertainty. In this economy, investors are looking to expand their reach, take advantage of growing markets and extend their presence across different domiciles.

In an international market, issuers are active in various countries, which introduces an array of legal and structural considerations. Increasingly, investors are leaning on their trustees to provide guidance and insights related to the assets they administer and the domains where those assets reside. More than ever, clients need a service provider with the footprint, flexibility and country-specific expertise to support them wherever opportunities arise.

“For the best support possible, investors should find a trustee with a long track record of successful deal closings.”

Deals across Europe

U.S. Bank, as trustee, has helped facilitate numerous high-profile deals across Europe – from Spain to the UK to Germany and elsewhere. Here are three examples of how clients leveraged our knowledge and experience to navigate the risks and requirements of different jurisdictions.

Barcelona football club (Spain):

  • This high-profile $1.6 billion deal (a multi-currency EUR and USD notes issuance) financed the rebuilding of FC Barcelona’s Camp Nou stadium and the revitalization of the surrounding area.
  • U.S. Bank served as settlement agent and paying agent for the bonds – for both the EUR note in Europe and the USD note in the U.S.

Noteworthy earned wage access (EWA) warehouse (UK):

  • This 102-million-pound deal helped secure financing for Europe’s largest EWA provider whose solution allows employees to access a portion of their earned wages before payday and strengthen their financial health.
  • U.S. Bank served as account bank, cash manager, registrar and security trustee.

Prestige Italian auto manufacturer (Luxembourg):

  • This Race Auto Securitization Sarl was the first auto ABS issuance by a subsidiary of an iconic Italian supercar manufacturer with a wealth of history in Formula One.
  • U.S. Bank served in the roles of paying agency, cash manager and account bank and provided trustee/data trustee services for this private warehouse.

The need for multi-jurisdictional support and expertise

Today’s trustees must stay abreast of growing markets and understand the full scope of requirements for different domiciles. The landscape is always changing, so it’s important they have the right personnel in the right locations and the flexibility to adapt to current needs. They should be able to manage complex transactions, protect the interests of their investors and effectively engage with all parties – from sponsors to arrangers to anyone else involved.

In this environment, European investors are also looking for high-touch client service that’s on par with U.S. offerings. Some providers in Europe, like U.S. Bank, meet this demand and prioritise swift and attentive customer service so clients can issue in a quick and cost-effective way. No two transactions are alike, so having a partner that can meet bespoke requirements – regardless the country – is key to staying nimble and avoiding unnecessary obstacles.

What to look for in a trustee

For the best support possible, investors should find a trustee with a long track record of successful deal closings. The trustee should be able to demonstrate, with examples as evidence, how they improved market position and market ranking. If they can’t, it might be time to explore new partnerships.

Several additional qualities you should look for include:

  • Advanced knowledge of new markets
  • Proactive communication
  • Agility, flexibility and responsiveness
  • A culture that embraces challenges and complexity
  • A strong background managing multiplex deals in diverse jurisdictions
  • The ability to be commercially aware, respecting a client’s time and costs
  • An understanding of the key ramifications of managing and executing a deal
  • Detailed cash, currency and investor reporting

At U.S. Bank, we have the experience, reach and technology to navigate the mechanics of complex deals with transparency, consistency and unwavering quality. For information about our comprehensive European trustee services, visit our website or contact us.

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Disclosures

Investment products and services are:

Not a Deposit • Not FDIC Insured • May Lose Value • Not Bank Guaranteed • Not Insured by any Federal Government Agency

U.S. Bank Global Corporate Trust is a trading name of U.S. Bank Global Corporate Trust Limited, U.S. Bank Trustees Limited and U.S. Bank Europe DAC (each a U.S. Bancorp group company). U.S. Bank Global Corporate Trust Limited is a limited company registered in England and Wales having the registration number 05521133 and a registered address of 125 Old Broad Street, Fifth Floor, London, EC2N 1AR. U.S. Bank Global Corporate Trust Limited, Dublin Branch is registered in Ireland with the Companies Registration Office under Reg. No. 909340 with its registered office at Block F1, Cherrywood Business Park, Cherrywood, Dublin 18, Ireland D18 W2X7. U.S. Bank Trustees Limited is a limited company registered in England and Wales having the registration number 02379632 and a registered address of 125 Old Broad Street, Fifth Floor, London, EC2N 1AR. U.S. Bank Europe DAC, trading as U.S. Bank Global Corporate Trust, is regulated by the Central Bank of Ireland. Registered in Ireland with the Companies Registration Office, Reg. No. 418442. The liability of the member is limited. Registered Office: Block F1, Cherrywood Business Park, Cherrywood, Dublin 18, Ireland D18 W2X7. Directors: A list of names and personal details of every director of the company is available for inspection to the public at the company’s registered office for a nominal fee. In the UK, U.S. Bank Europe DAC trades as U.S. Bank Global Corporate Trust through its UK Branch from its establishment at 125 Old Broad Street, Fifth Floor, London, EC2N 1AR (registered with the Registrar of Companies for England and Wales under Registration No. BR020005). Authorised and regulated by the Central Bank of Ireland. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. In Luxembourg, U.S. Bank Europe DAC trades as U.S. Bank Global Corporate Trust through its Luxembourg Branch under RCS number B244276 with its registered office at 4, rue Albert Borschette, L-1246 Luxembourg, and is regulated and authorised by the Central Bank of Ireland (CBI) as well as by the Commission de Surveillance du Secteur Financier (CSSF). Details about the extent of our authorisation and regulation by the CBI and the CSSF are available from us on request. All banking services are provided through U.S. Bank Europe DAC. U.S. Bank Global Corporate Trust Limited and U.S. Bank Trustees Limited are Trust Corporations and not banking institutions and are not authorised to carry on banking business in the United Kingdom, Ireland or any other jurisdiction.

For U.S. Bank National Association:
Deposit products offered by U.S. Bank National Association. Member FDIC. U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments.