A Luxembourg-based securitisation vehicle has introduced a new high-yield, investment-grade note that is attracting attention among private banks and mid-sized institutional investors searching for elevated euro returns. Arto Private Securities (APS) has launched the APS MKB CLN, a 9.5 per cent annual coupon note linked to an A+ rated infrastructure bond used to finance the mining and processing of high-purity quartz, silicon, germanium and rare earth metals in Germany.
The note provides pass-through exposure to the MKB DQ Bond I 2025(29), a €250mn issue from MKB Invest AG paying 10 per cent per year and secured against a first-ranking land charge over a mining property in Freiberg valued at €5bn, giving the bond an unusually high 20x collateral coverage ratio. The underlying instrument carries an investment-grade A+ rating, offering investors a rare combination of yield and security in the current euro credit environment.
Critical minerals backdrop adds strategic relevance
The bond’s proceeds support the expansion of extraction and processing facilities for high-purity quartz, silicon, germanium and rare earth elements—materials central to Europe’s semiconductor, renewable energy and advanced manufacturing supply chains. Policymakers across the EU have emphasised the need to secure domestic sources of such materials, a point that has sharpened investor interest in the APS-linked structure.
The Freiberg asset, registered in the Mining Land Book and located in one of Germany’s historical mining regions, serves as the collateral underpinning the bond to which investors in the CLN gain economic exposure.
Luxembourg securitisation framework provides structural safety
APS issues the note through its Compartment APS MKB, created under Luxembourg’s Securitisation Act of 2004. The framework provides limited recourse, strict segregation of compartment assets and bankruptcy remoteness, features that have made Luxembourg a centre for private securitisation vehicles used by European banks, sponsors and non-bank lenders.
Investors in the CLN have recourse only to assets allocated to the APS MKB compartment and not to the broader securitisation vehicle or its other compartments.
The note is being offered in units of €1,000 with a minimum subscription of €100,000 and a maximum issue size of €250mn. It matures on January 5, 2030, with a discretionary one-year extension. The ISIN is CH1508981847.
Settlement via Kaiser Partner reflects institutional-grade infrastructure
Subscriptions and settlement are handled by Kaiser Partner Privatbank AG of Liechtenstein, which acts as the paying and settlement agent. Investors’ banks submit nominal amounts, ISIN codes and settlement dates before exchanging standard settlement instructions with Kaiser Partner. Delivery-versus-payment settlement is then executed through SIX SIS AG.
The vehicle utilises advisory and administrative support from Atdomco S.à r.l. in Luxembourg, with auditing provided by Fiducia Audit S.à r.l.
Growing demand for high-yield, high-quality euro exposures
The launch comes as investors continue to navigate an uneven European rate environment in which the safest sovereign and investment-grade corporate bonds often yield below inflation, while private credit markets increasingly push investors into riskier structures.
By linking an A+ rated, heavily collateralised infrastructure bond to a securitised note with a fixed annual coupon, APS is offering an instrument that seeks to bridge the gap between secure credit and elevated returns.
Market participants say the combination of strong collateral, Luxembourg legal protections and exposure to strategic critical-minerals assets could see the APS MKB CLN gain traction among wealth managers and multi-family offices allocating to alternative fixed income.
Whether the product’s appeal broadens beyond private-market channels will depend in part on investor appetite for long-dated exposure to the German mining and advanced-materials sector—an area increasingly viewed as central to Europe’s industrial and technological competitiveness.
