Securitizations for Inspired Landmark Developments

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Home • Securitization for Project Capital

Overview

OVO’s Securitized Project Capital framework redefines how large-scale developments are financed. By combining institutional securitization principles with U.S. Treasury credit enhancement, blockchain-based execution, and tokenized issuance, OVO delivers a structure that is both innovative and institution-grade.

Our approach enables sponsors to secure non-recourse project funding while maintaining transparency, regulatory discipline, and execution certainty—without reliance on conventional bank balance sheets or dilutive capital sources.

Non-Recourse Structure

Traditional project financing—construction loans, bank facilities, leasebacks, private equity, or government programs—is often slow, complex, and dilutive. OVO replaces these models with a self-amortising, non-recourse securitization structure that allows sponsors to remain focused on delivery and execution.

At the core of this framework is a trustee-managed sinking fund, funded directly from issuance proceeds and governed by institutional standards.

Key components include:

Sinking funds
Funded from gross proceeds of the tokenized issuance and managed by an independent securities trustee. These funds service coupon/dividend obligations and are structured to retire the note in full over time.
Non-Recourse Financing
Repayment is isolated to the securitization structure itself, eliminating recourse to the sponsor’s balance sheet.
U.S. Treasury Credit Enhancement
Acts as a default backstop, ensuring investors are protected if sinking funds underperform.

This structure protects investor capital while preserving sponsor autonomy and limiting liability.

Securitization

Securitization transforms liquid and illiquid assets into tradeable securities through a Special Purpose Vehicle (SPV). Assets are transferred into the SPV and serve as collateral for the issuance of asset-backed instruments.

OVO structures securitizations across a broad range of asset types, including:

Publicly traded securities and portfolios
Loans, leases, and receivables
Real estate and infrastructure assets
Tangible and alternative assets
Contractual claims, royalties, and option rights

Securitization enables efficient capital formation, expands investor access to non-traditional assets, and supports liquidity without burdening bank balance sheets.

Special Purpose Vehicle

Each issuance is executed through an OVO-sponsored SPV, established solely for securitization purposes and structured to institutional standards.

The SPV provides:

Ring-fenced assets and liabilities
Transaction-level limited liability
Structural isolation between issuances
Flexibility to support multiple securitizations without cross-contamination

This architecture ensures legal clarity, creditor protection, and execution integrity.

Industry Fundamentals

At its foundation, securitization pools assets or rights into a reference collateral portfolio, which may be homogeneous or diversified. Common collateral categories include:

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

This versatility makes securitization one of the most durable tools in global capital markets.

Global Securitization Market

Securitization is a cornerstone of institutional finance. In 2024, the global securitization market exceeded $13 trillion, with approximately

$1 trillion issued in the United States alone.

Industry bodies such as the Association for Financial Markets in Europe (AFME) continue to support securitization as a critical mechanism for capital formation, balance-sheet efficiency, and economic growth.

Preferred &Perpetual Participating Structures

For development capital, preferred perpetual participating instruments are often optimal. Unlike traditional bonds, these instruments do not require a fixed maturity date.

Key features include:

Annual dividends or coupons
Performance participation when financial thresholds are exceeded
Sinking funds that accumulate reserves and retire par value over time
Fully non-recourse repayment mechanics

This structure aligns investor returns with project performance while maintaining capital protection.

Cash Flow Waterfall & Sinking Funds

All issuances operate under a clearly defined cash flow waterfall, detailed within the PPM or prospectus.

Proceeds are segregated into:

Securitization servicers
Multiple classes of sinking funds
Net proceeds for project buildout capital

Sinking funds:

Pay dividends or coupons
Accumulate reserves for mandatory calls
Retire obligations progressively

This creates a self-funding capital structure that enhances predictability and investor confidence.

Blockchain & Tokenization

OVO integrates blockchain infrastructure to modernize securitization execution while preserving institutional discipline.

Key benefits include:

Blockchain-enabled Delivery-versus-Payment (DvP) settlement
Immutable, auditable transaction records
Automated waterfall distributions via smart contracts
On-chain incorporation of core documents (PPM, term sheets, reliance letters)
Reduced reliance on institutional intermediaries without compromising governance

U.S. Treasury collateral remains off-chain and institutionally custodied, serving as a credit backstop to the digital issuance.

Conclusion

OVO’s securitized project capital platform integrates non-recourse structuring, U.S. Treasury credit enhancement, trustee-managed sinking funds, and blockchain-enabled execution into a single institutional-grade solution.

The result is a resilient, transparent, and scalable financing framework purpose-built for landmark, capital-intensive developments.

Key Benefits:

Scalable Execution across diverse development assetss
Reduces the need for custodians, broker-dealers, and clearing systems
Institutional Capital Protection via Treasury-backed enhancement
Non-Recourse Project Funding without balance-sheet dilution
Execution Efficiency through tokenized issuance and DvP settlement
Regulatory Discipline aligned with institutional market standardst