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 ?
Iran and the EU are working on Special Purpose Vehicle (SPV), which will replace the SWIFT system and will allow to circumvent US sanctions against Tehran.
The special purpose vehicle, as modestly described, will serve as a financial clearing house for transactions with Iran.
"We believe it is unacceptable that National Express may be able to cling on to its remaining franchises through the use of a 'special purpose vehicle'.
Whilst many may be contemplating a Le Mans-style dash to their Special Purpose Vehicles before 2003, be warned there are indications that, much like clamping, the penalties may be retrospective.
31, three European countries France, Germany and the UK (shortened as E3) officially announced the creation of the Instrument in Support of Trade Exchanges (INSTEX), a special purpose vehicle, to allow them bypass US sanctions on trade with Iran.
The special purpose vehicle, through CMI with strong support from the Penang Island City Council (MBPP), has 17 ongoing public realms improvement and conservation projects at a total cost of approximately RM48 million.
IRB PS Highway Private is a Special Purpose Vehicle (SPV) of India's leading and one of the largest Highways Infrastructure developers, IRB Infra, formed and entrusted to undertake the construction and management of company's second HAM project, viz., 4 lanes of 56.80 kms section between Poondiyankuppam and Sattanathpuram on NH-32 (Previously NH-45A).
The project is under a special purpose vehicle named Global Luzon Energy Development Corp., which will undertake the financing, design, procurement, construction, testing, commission, operation and maintenance of the planned power plant.
M2 EQUITYBITES-June 15, 2017-Bezant Resources Closes Acquisition of Panamanian Special Purpose Vehicle Kellstown Investments
"Global would like to assure its shareholders that the implementation of the restructuring plan is dependent on the exemption granted by the Capital Markets Authority from the mandatory offer rules to the special purpose vehicle that shall subscribe to Global's capital increase," the statement said.
"One special purpose vehicle is going to hold the assets from our balance sheet which will be moved to that company," al-Ghunaim is reported to have said at a news conference.
Standard & Poor's Ratings Services has assigned a 'BBB' issue rating to the $1 billion trust certificate program to be launched by MAF Sukuk Ltd., the special purpose vehicle incorporated in the Cayman Islands.

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