Luxembourg interested in the conquest of asteroids

Investment funds and the conquest of asteroids

Luxembourg is going to launch a new initiative to turn a profit by mining asteroids. The government wants to become a major actor in the creation of a new spatial industry domain and will be helped in that way by two American and European partners, and its association with Jean-Jacques Dordain, former Director of the European Space Agency.

Local actors in this domain, Luxinnovation and the Space Cluster, will be involved in the development of this national project, which will begin by the research of companies already operating in this field. The second step, the utilisation in the space, will be developed in the decades to come.

There is no doubt that investment funds will be active in the asteroids race as it is already the case in the USA.

It will be also possible to securitise the future mining resources of these asteroids.

The securitisation gives the opportunity to obtain the NPV (net present value) of future income streams; in transforming future income streams into an immediate cash flow. Investors achieve this future income stream by buying securities issued by the securitisation vehicle and, therefore, ensuring the right to potential future returns. The beneficiary discounts the immediate payment in order to allow investors to obtain a yield, taking into consideration the uncertainty of receiving future income streams. As such investors buy the future income streams, the yield and the risk associated with the returns.

Luxembourg is a favourable legal and fiscal environment for securitisation.

Creatrust team of securitisation specialists is happy to help you take advantage of all securitisation transactions.

We can help originators and promoters with the following: