WestLB is exploring the possibility of securitising the Whyte & Mackay whisky stocks.
The German bank recently backed the £200m management buy-out of Whyte & Mackay and Invergordon Distillers' own-label business from Fortune Brands, maker of Jim Beam bourbon and Titleist golf balls.
The deal, Scotland's largest ever MBO, also included some vodka and liqueur brands.
The principal finance team at WestLB put up the lion's share of the finance and issuing a bond would be a way to recoup their investment.
While the whisky will take several years to mature, a lump sum could be raised against future sales.
The securitisation of Whyte & Mackay whisky stocks would be the latest in an innovative range of assets to used in such a way.
The European securitisation market, one of the fastest growing areas in the capital markets, is on course for a record year of issuance.
Asset-backed securitisation in Europe is expected by some analysts to reach its highest ever issuance rate by the end of 2001, with the range of assets securitised becoming increasingly innovative.
Cashflows from property developments, state lotteries and even money due to be paid to countries from the European Union have been securitised as issuers jump on the bandwagon. Other assets mooted for securitisation include a diamond wholesaler's stock of gems.
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Whyte & Mackay sold to management for £208m (18 October 2001)