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Seychelles Orphan Vehicles
Orphan vehicles are typically companies which are used to own valuable assets but which are ultimately not beneficially owned by any individual or corporate groups.
Historically orphan vehicles have been owned by purpose trusts to achieve orphan status (a purpose trust does not have beneficiaries).
Since 2009 it is possible to orphan a Seychelles IBC by having its shares owned by a Seychelles foundation. A Seychelles foundation is a company without members.
In this example the founder is a group finance company which has issued debt instruments supported by a parent company guarantee. The terms of the debt instruments may prevent early repayment and so the group finance subsidiary may wish to divest itself of the direct obligation to meet repayments under the debt instruments in order, for example, to improve the group's credit rating. To that end, the group finance subsidiary could arrange sufficient funding of the Seychelles IBC to enable it to cover interest and ultimate capital repayment obligations on the debt instruments which are in issue. With the consent of the receiving agent or trustee of the debt instruments the obligations of the group finance subsidiary can be transferred to the Seychelles IBC. The contingent liability of the parent company under the supporting guarantee may also be capable of being released at this point so as to remove it from the consolidated balance sheet liabilities of the group.
Orphan Seychelles IBCs can be set up in this way for a variety of finance transactions and commercial purposes.
Jordans Trust Company (Seychelles) Limited is licensed and regulated by the Seychelles Financial Services Authority.