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Page modified: Saturday, June 24, 2006 10:36:07

A purpose company, often also Special PUR-float Vehicle (SPV), Special PUR-float Entity (SPE) or single PUR-float company (SPC), is a purpose company, usually for purposes of the Unternehmensfinanzierung.

Into SPVs for financing purposes fortune articles are brought, in order to be able or in other way standardized vested titles to have be able to confirm these rights by a document then afterwards.

Often such societies are created, if several enterprises for the realization of a special project as for example the building of a large real estate, a power station or the development of a technical innovation, to unite.

With large-scale projects the financial sources require frequently that for it a SPV is created. Thus the credit risk can be limited on the special project. There is not the danger that still additional risks from other activities arise, which the financial source (usually banks) cannot ignore. SPV are created often also therefore, in order with large-scale projects one ate Backed financing to make possible.

SPVs have their seat often in countries with favorable tax legislation or small establishment hurdles, so-called offshore bank places as for example on the Bahamas, the dock one islands or the Isle OF one.


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