Special Purpose Vehicle

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Special Purpose Vehicle

A subsidiary of a company that attempts to isolate risk from the parent company by maintaining its assets and liabilities on a completely separate balance sheet. It can be used as a counterparty in swap transactions, or the parent company can finance a project through an SPV that would put the parent company in danger of bankruptcy if the project does not perform well. During the Enron scandal, SPVs developed notoriety because Enron hid much of its debt in SPVs.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Under the newly introduced regime, structures such as Intermediate Special Purpose Vehicles (ISPVs) and Special Purpose Companies (SPCs) will now be classified as prescribed companies.
Under a newly introduced regime, structures such as Intermediate Special Purpose Vehicles (ISPVs) and Special Purpose Companies (SPCs) will now be classified as Prescribed Companies.
Belarus supplies to Turkmenistan mainly include high value-added goods, such as trucks, special purpose vehicles, tractors, road-building equipment, medicines, woodworking products, and agricultural products.
Reliance Infrastructure Ltd is one of the largest infrastructure companies, developing projects through various special purpose vehicles (SPVs) in several high growth sectors such as power, roads and Metro rail in the infrastructure space and the defence sector.
Only 'special purpose vehicles' can be exempted under the EO, such as fire trucks, ambulances, funeral hearses, crane lorries, boom trucks, tanker trucks, reefers, street sweepers, mixers, and garbage compactors, the official added.
(LSE: NESF) has signed six share purchase agreements for six separate projects, with three unrelated counterparties, to acquire the special purpose vehicles owning Rampisham, Aller Court, Hill, Forest Farm, Wasing and Flixborough solar plants, the company said.
A new enterprise with its extensive experience in modifications of special purpose vehicles will further enhance INKAS[R] positions in the industry as well as bring the company closer to its customers in the region.
The funding mechanism to acquire/build ships could undergo a sea change as the Export-Import Bank of India is planning to get shipping companies and shipyards to float special purpose vehicles for each ship, with investors, including banks, investing in the financial instruments issued by these vehicles.
Global Banking News-August 28, 2015--Central Bank to tighten rules on special purpose vehicles
Tractors accounted for 8.6 percent, trucks made up 4.1 percent, minibuses 2.3 percent, buses 1.1 percent and special purpose vehicles 0.2 percent as of January.
Overall, the EP wants to include insurance products in the investment category(1), along with certain pension products and instruments issued by special purpose vehicles (financial securitisation instruments).

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