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What is an SPV?

'SPV' stands for 'special purpose vehicle'. An SPV is a body corporate, usually with limited liability, which is specially-incorporated for the purpose of a structured finance transaction in a jurisdiction and with an ownership structure which for tax, regulatory and/or accounting reasons result in favourable treatment for the transaction for which it has been set up. SPE (special purpose entity) and SPC (special purpose company) refer to essentially the same concept. (SPV, SPE and SPC can also refer to the terms 'single purpose vehicle', 'single purpose entity' and 'single purpose company' respectively). In Regulation (EU) 2017/2402 (EU Securitisation Regulation) and Assimilated Regulation (EU) 2017/2402 (UK Securitisation Regulation), SPVs are referred to as securitisation special purpose entities (SSPEs).

SPVs are most often used as financing vehicles (typically, issuers of securities) in structured finance transactions (such as repackagings) and securitisations and therefore 'issuer' and 'SPV' become somewhat interchangeable terms as a matter of market practice. For general introductions to repackagings and securitisations, see Practice Notes: Introductory