of Volkswagen Financial Services AG

Funding Strategy

In terms of funding, Volkswagen Financial Services AG generally pursues a strategy of diversification with the aim of achieving the best possible balance of cost and risk. This means accessing the widest possible variety of funding sources in the various regions and countries with the objective of safeguarding funding at optimum terms at all times.

The main topics of our refinancing strategy are:

-  Well diversified refinancing instruments

Ensuring our growth on the one hand, and refinancing at the best conditions possible on the other requires an extensive set of highly sophisticated instruments and measures. Our spectrum includes issuing bonds in different markets and currencies as well as asset-backed securities (ABSs) and  commercial papers as well as customer deposits. Due to our presence in different market segments we benefit from the most favorable conditions.

-  Also utilising means outside the company rating

Our customers' direct bank deposits are not subject to agency ratings. In the case of ABS tranches, it is the underlying receivables, which are subjected to the rating, but not the company. With all these issuances we have achieved triple-A ratings, which is a proof for their high quality. 

-  Finding and tapping new investor

The acquisition of new investors by usage of new instruments, tapping new regions or usage of new currencies  extends our refinancing basis.

-  Minimizing risks by usage of capital market derivatives

It goes without saying that we observe the development of the interest rate structure curve in order to take advantage of favorable refinancing rates. We utilize particular financial derivatives such as interest rate swaps so that we always successfully match maturities with our current business operations. In principle refinancing is carried out in local currency. If the refinancing is not done in local currency, the currency risk is fully hedged.

Letter of Comfort

Debt Issuance and Commercial Paper Programmes

The following table shows the programmes issued by Volkswagen Financial Services AG, Volkswagen Bank GmbH and their affiliated subsidiaries.

Corporate Bonds

Via the following links you can find an overview of outstanding bonds for all issuers under the debt issuance programme of Volkswagen Financial Services AG.

Asset Backed Securities

Volkswagen Financial Services (UK) Ltd. 

Volkswagen Pon Financial Services B.V.

Volkswagen D’Ieteren Finance SA 

Volkswagen Financial Services Polska sp. z o.o.