Press Release

Volkswagen Financial Services carry out largest Auto ABS transaction in pounds sterling

  • Financing volumes of around 1.2 billion pounds sterling were securitised
     
  • Volkswagen Financial Services underline their leading role in the Auto ABS market
     
Braunschweig, 3 September 2014. Volkswagen Financial Services have placed the securitisation transaction Driver UK two with a volume of around 1.2 billion pounds sterling (GBP), or around Euro 1.5 billion. As a result, the issue is currently the highest-volume Auto ABS transaction conducted in the UK currency. The largest Auto ABS transaction up to now, which was carried out in 2012, totalled around GBP 575 million. Following the success of the debut transaction Driver UK one with a volume of GBP 500 million in 2008, Driver UK two is now the second Auto ABS transaction placed on the market by Volkswagen Financial Services in pounds sterling. The issue to securitise motor vehicle financing contracts was sold in two tranches at the lower end of the price range. During the bookbuilding process, the Class A Notes were placed at a price of 1-month Libor plus 42 basis points and the Class B Notes at plus 90 bp. Both tranches were well received by a total of 41 investors.

"Driver UK two is the highest-volume Auto ABS transaction conducted in pounds sterling to date. It attracted high investor demand and both tranches were able to be successfully placed with a low coupon rate. This confirms the leading role played by Volkswagen Financial Services in the European Auto ABS market," says Frank Fiedler, CFO of Volkswagen Financial Services AG. He adds: "With our broad refinancing base in sterling, we are strengthening our business in the United Kingdom, which has developed well during the past few years." The penetration rate of Volkswagen Financial Services in the UK at the end of the last financial year, for example, lay at 42.6 percent (previous year: 36.6 percent). and “Top Employer” in 2013 and 2014.”

The following tranches were placed:
 
  • Tranche A: GBP 875.0 million Class A notes,
    Rating: [AAAsf]/[AAA(sf)]/[AAA(sf)] (Fitch/S&P/DBRS)
    ISIN: XS1097314634
  • Tranche B: GBP 135.9 million Class B notes,
    Rating: [A+sf]/[A+(sf)]/[A(high)(sf)] (Fitch/S&P/DBRS)
    ISIN: XS1097314717
Altogether, the diversified provisional pool comprises receivables of Volkswagen Financial Services (UK) Limited, a wholly owned subsidiary of Volkswagen Financial Services AG, resulting from more than 48,000 financing contracts, with around 75 percent coming from new vehicle financing and 25 percent from used vehicle financing.

The transaction was co-arranged by Volkswagen Financial Services AG and HSBC Bank plc. It was marketed by the two Lead Managers HSBC Bank plc and Credit Suisse.

Information for editors

Volkswagen Financial Services are a business division of the Volkswagen AG group of companies and comprise Volkswagen Financial Services AG along with its associated companies and the financial service companies in the US, Canada, Argentina and Spain that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania and Porsche brands and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers. Volkswagen Financial Services have a total of 10,945 employees worldwide – including 5,389 alone in Germany (as at: 31.12.2013). The Annual Report 2013 of Volkswagen AG reported total assets for Volkswagen Financial Services of around EUR 115.1 billion, an operating result of EUR 1.6 billion, and a portfolio of around 10.7 million current contracts.

Contact for press inquiries:


Marc Siedler (Press Officer)
Phone: + 49 (0)531 / 212-87675
E-Mail: marc.siedler@vwfs.com
www.vwfs.com