Volkswagen Financial Services Issue Auto ABS and Bonds
ABS receivables volume amounts to around BRL 1.1 billion
Lowest interest rate of all ABS transactions so far by Volkswagen Financial Services in Brazilian real
Capital market issues in British pounds, Swedish krona, Norwegian krona and euro
Braunschweig, 9 July 2019. Volkswagen Financial Services have successfully placed their fourth Brazilian auto asset-backed securities (ABS) transaction. The securitisation transaction Driver Brasil four, which is secured by receivables from Banco Volkswagen S.A., has a volume of around 1.1 billion Brazilian reals (BRL) or around 253 million euros. In addition, Volkswagen Financial Services successfully issued bonds in pounds sterling (GBP), Swedish krona (SEK) and Norwegian kronor (NOK). Volkswagen Bank GmbH issued a bond with a volume of 500 million euros.
The ABS Senior Tranche with a volume of one billion BRL was placed in a bookbuilding process at a price of 106.25 percent of the CDI (Certificado de Depósito Interbancário). Driver Brasil four was thus placed in Brazil with the lowest interest rate of all ABS transactions of Volkswagen Financial Services to date. The order book was oversubscribed 2.5 times at the placement price. The rating agencies rated the senior tranche as AAA.br (Fitch) and Aaa.br (Moody´s). Volkswagen Financial Services issued the last auto ABS transaction in Brazilian real in 2015.
In addition, two bonds were issued by Volkswagen Financial Services N.V.
Volkswagen Financial Services successfully placed a bond (ISIN: XS2019237945) with a volume of GBP 350 million (approximately 393 million euros), a term of five years and a fixed interest rate of 2.125 percent p.a. The order book of the transaction was oversubscribed 4.5 times.
A second bond (ISIN: XS2018774070) with a volume of SEK 500 million (approximately 46 million euros) and a term of two years was issued at the three month stibor rate plus 0.69 percent p.a.
In addition, a bond was placed in Norwegian kroner (ISIN: XS2022037019). The bond has a volume of 500 million Norwegian kroner (approx. 52 million euros), a term of three years and an interest rate of 2.53 percent p.a.
Volkswagen Bank GmbH was also active on the capital market. The company issued a bond (ISIN: XS2023306140) with a volume of 500 million euros, a three-year term and an interest rate of 0.375 percent p.a.
With total assets of around 208 billion euros as at 31.12.2018, auto ABS contributed 39 billion euros (previous year: 33.7 billion euros) or around 19 percent to the refinancing of Volkswagen Financial Services. Other significant proportions were bonds, also with around 39 billion euros (previous year: 32.7 billion euros), and customer deposits with 32.4 billion euros (previous year: 33.5 billion euros). 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 16,267 employees worldwide – including 7,010 alone in Germany. Volkswagen Financial Services report total assets of around EUR 207.6 billion, an operating result of EUR 2.6 billion euros and a portfolio of around 20.3 million current contracts (as at: 31.12.2018).