Braunschweig, 17 October 2018. Volkswagen Leasing GmbH, a wholly-owned subsidiary of Volkswagen Financial Services AG, has successfully placed its 27th Auto-Asset Backed Securities (ABS) transaction comprising securitised leasing receivables, VCL 27, with a volume of 957 million euros. During the bookbuilding process, the Class A Notes were placed at a price of 1-month Euribor plus 22 basis points, and the Class B Notes at plus 68 basis points.
"As was the case with the ABS issuance Driver 15, we also estimate that the current transaction, VCL 27, already meets the requirements for STS securitisations that will apply from 2019. After all, as one of the leading European ABS issuers, we want to show early on that we will comply with the quality criteria," says Frank Fiedler, CFO of Volkswagen Financial Services AG, and continues: "Auto ABS are a very important funding source for us. The increasing refinancing volume and the good placement of the current transaction demonstrate the high level of interest shown by investors in our ABS issuances. This should remain the case also under the new conditions."
STS stands for simple, transparent and standardised securitisations. The new EU securitisation regulation will take effect from 2019.
The order book of VCL 27 was oversubscribed 1.6 times (Class A) and 1.4 times (Class B) at placement pricing levels.
Class A: EUR 900.0 million
ISIN: XS1888985568
Rating: [Creditreform/ Moody’s / Fitch] [AAA(sf)/Aaa(sf)/AAA(sf) ]
Class B: EUR 18.2 million
ISIN: XS1888988828
Rating: [Creditreform/ Moody’s / Fitch] [AA-(sf)/A1(sf)/A+(sf)]
With the transaction, a diversified pool of receivables was securitised from around 94,175 leasing contracts. Contracts for new vehicles make up around 95 percent of this figure. The average financed value per vehicle amounts to around EUR 10,000.
The transaction bears the quality label "Certified by TSI - deutscher Verbriefungsstandard" from True Sale International GmbH. The transaction was marketed by the two Joint Lead Managers BNP Paribas und UniCredit Bank AG.
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, Volkswagen Bank GmbH, Porsche Financial Services, and the financial services companies in the USA, Canada, and Spain that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania brand 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 15,770 employees worldwide – including 6,670 alone in Germany. Volkswagen Financial Services report total assets of around EUR 186.9 billion, an operating result of EUR 2.5 billion euros and a portfolio of around 19.7 million current contracts (as at: 31.12.2017).
