Securitizations for Inspired Landmark Developments

Redefining possible to build great things

Home • Securitization for Project Capital

Overview

OVO’s Securitized Project Capitalization framework redefines how large-scale developments are financed. By combining traditional securitization principles with blockchain execution, tokenization, and credit enhancement via U.S. Treasuries, we deliver a structure that is both innovative and institution-grade.

Our approach enables sponsors to secure non-recourse funding for transformational projects while maintaining transparency, compliance, and speed — without the unnecessary burden of conventional banking intermediaries.

Non-Recourse Structure

Traditional financing methods such as construction loans, bank loans, leasebacks, venture or private equity investments, and government programs are often complex, dilutive, and time-consuming. OVO eliminates these inefficiencies, allowing project sponsors to focus entirely on execution. At the heart of OVO’s model is a unique sinking fund structure. The Sinking fund is funded from gross proceeds of the Tokenized Note Sale and is managed by an independent securities trustee. Key components of our non-recourse structure include:

Sinking funds: are designed to to service interest obligations and in five years, to retire the Note entirely.
Non-Recourse Financing: This repayment mechanism makes the securitization non-recourse.
U.S. Treasury Credit Enhancement: Acts as a default backstop, ensuring investors are protected if sinking funds underperform.

This ensures investors’ capital is protected, while developers retain freedom from personal or corporate liability.

Securitization

Securitization is the process of transforming liquid and illiquid assets into new tradeable securities, typically through a Special Purpose Vehicle (SPV). Assets are transferred into the SPV, which serves as the collateral for the issuance of new securities.

This process allows for a wide range of assets to be securitized:

Publicly traded assets (equities, bonds, funds)
Debt-linked assets (loans, leases, mortgages)
Tangible and alternative assets (real estate, wine, classic cars)
Other claims or option contracts

Securitization not only provides capital to originators but also offers investors access to otherwise inaccessible markets, diversifies risk, and can support macroeconomic liquidity by freeing bank balance sheets for additional lending.

Special Purpose Vehicle

A securitization SPV is a corporation, trust, or other entity, established solely for securitization purposes. Its structure isolates obligations from the originator, providing:

Ring-fenced assets and liabilities
Limited liability for each transaction
Tangible and alternative assets (real estate, wine, classic cars)
Flexibility to launch multiple securitizations without cross-contamination of assets or creditors

Industry Fundamentals

At its core, securitization pools assets or rights into a reference portfolio or collateral pool, which may be homogeneous or heterogeneous. These portfolios can include:

Bond and stock portfolios
Real estate developments
Vehicle loans and leases
Residential and commercial mortgages
Credit card receivables, student loans, aircraft leases
Brand and franchise royalties

Securitization Market

Securitization is a routine mechanism in global capital markets. In 2024, the worldwide market exceeded $13 trillion, with the U.S. accounting for nearly $1 trillion. The AFME (Association for Financial Markets in Europe) continues to advocate securitization as a vital funding tool, providing originators with efficient access to capital markets.

Securitized Preferred Perpetual Participating Offering

For project capital, perpetual preferred participating shares are often ideal. Unlike traditional bonds, these instruments have no maturity date:

Annual dividends are paid to shareholders
Performance participation (“twin-win”) provides additional returns when financial targets are met
Sinking funds grow over time to retire outstanding par value, ensuring non-recourse repayment

Cash Flow Waterfall & Sinking Funds

The allocation of payments from the collateral portfolio is defined by a cash flow waterfall, detailed in offering documents (PPM/prospectus).

Proceeds are segregated into:

Securitization servicers
Multiple classes of sinking funds (institutional and private)
Net proceeds for project buildout

Sinking funds:

Fund annual dividends/coupons
Accumulate reserves for mandatory call options
Retire obligations over time, providing investor security and self-funding for the project

Blockchain & Tokenization

OVO integrates blockchain to streamline securitization:

Disintermediation: Reduces the need for custodians, broker-dealers, and clearing systems
Immutable Transparency: Investors can verify fund activity cryptographically
Automated Compliance: Smart contracts execute waterfall distributions, dividends, and mandatory calls
Institutional-Grade Security: Key documents (PPM, Term Sheet, Reliance Letter) are incorporated into the blockchain for due diligence
Credit Protection: US Treasuries act as a default backstop

Conclusion

OVO’s securitized project framework combines non-recourse structuring, blockchain tokenization, sinking funds, and US Treasury-backed security into a single, institutional-grade platform. Projects are executed efficiently, transparently, and resiliently, delivering a next-generation solution for large-scale capital-intensive ventures.

Benefits:

Scalable Execution: Framework applicable across diverse asset classes and large-scale landmark projects
Investor Security: Reduces the need for custodians, broker-dealers, and clearing systems
Project Financing Freedom: Investors can verify fund activity cryptographically
Technological Efficiency: Smart contracts execute PPM and due diligence documents integration for transparency and compliance, waterfall distributions, dividends, and mandatory calls
Credit Protection: Treasury-backed default backstop