Credit Linked Note on UAE Invoice Receivables

Aura Finance is a UAE fintech that provides working capital to small and medium-sized businesses through invoice discounting and factoring. It supplies the technology, credit underwriting, operations and capital itself, and delivers the finance inside the platforms its partners already use to serve their SME customers.

Aura's model grows with the volume of invoices it can fund, and the funding has to arrive in a form that fits the asset. The business needed a structured debt solution that could finance a replenishing pool of UAE receivables, with clear security for investors, while leaving management to focus on origination.

Structada set up a dedicated compartment on a Luxembourg securitisation platform and structured a Senior Secured Credit Linked Note of up to USD 7.5 million against it. Investors take first-ranking security over the replenishing pool of UAE invoice receivables with the security registered with the Emirates Integrated Registries Company. We put the final terms and transaction documents in place and appointed the calculation, administration, paying and settlement agents and the auditor. The note is ISIN-bearing and settles through Clearstream on a delivery-versus-payment basis.