Volkswagen Financial Services successfully placed auto ABS in Euro
Securitised receivables volume amounts to one billion euros
First marketed ABS transaction with STS status after introduction of the new EU securitisation regulation
Braunschweig, 22 March 2019. Volkswagen Leasing GmbH, a wholly-owned subsidiary of Volkswagen Financial Services AG, has successfully issued its 28th auto asset-backed securities (ABS) transaction from securitised leasing receivables, VCL 28, with a volume of one billion euros. During the bookbuilding process, the Class A Notes were placed at a price of 1-month Euribor plus 21 basis points, and the Class B Notes at plus 65 basis points.
The transaction VCL 28 is the first European securitisation transaction that will receive the newly introduced STS status for particularly high-quality securitisations. This new label was introduced as part of the EU securitisation regulation that came into force on 1 January 2019.
The abbreviation "STS" stands for simple, transparent and standardised securitisations. The STS quality criteria will be verified by a verification institution approved by the BaFin. For the VCL 28 transaction, the STS conformity will be checked by STS Verification International GmbH (SVI).
"The transaction VCL 28 is the first European ABS transaction to be placed on the market with the STS label for premium securitisation transactions. With ABS issues being a significant part of our refinancing, it is particularly important for us not only to meet the new criteria but also to play a pioneering role in the market," says Frank Fiedler, CFO of Volkswagen Financial Services AG.
In addition, the transaction bears the "Certified by TSI - German Securitisation Standard" seal of quality of True Sale International GmbH, which has been established on the market for many years. The transaction was marketed by the two joint lead managers Lloyds Bank and SEB.
The order book of VCL 28 was oversubscribed 2.3 times (Class A) and 2.6 times (Class B) at placement pricing levels.
Class A: 941 Millionen Euro
Expected Rating: [Creditreform/Moody’s/Fitch] [AAA(sf)/Aaa(sf)/AAA(sf)]
Class B: 19 Millionen Euro
Expected Rating: [Creditreform/Moody’s/Fitch] [AA-(sf)/A1(sf)/A+(sf)
With the transaction, a provisional diversified pool of receivables was securitised from around 76,000 leasing contracts. The average financed value per vehicle amounts to around EUR 10,000.
In the 2018 financial year, asset-backed securities contributed 39 billion euros or around 19 percent to the refinancing of Volkswagen Financial Services. Other significant portions were bonds with around 39 billion euros (around 19 percent) and customer deposits with around 32 billion euros (around 16 percent).
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).