Press Release

October 7, 2019

Volkswagen Financial Services place Auto-ABS worth one billion Australian dollars

Largest transaction by Volkswagen Financial Services in Australia ever

Braunschweig, 7 October 2019. Volkswagen Financial Services have successfully placed its sixth Australian auto asset-backed securities (ABS) transaction with a volume of one billion Australian dollars (AUD) (approximately 610 million euros). The transaction, Driver Australia six, is Volkswagen Financial Services' largest ever issue in Australian dollars and was signed by 21 different investors. The demand was so high that the volume was increased by AUD 250 million compared to the originally planned transaction amount.

The Auto-ABS transaction is secured by receivables of Volkswagen Financial Services Australia Pty Ltd. and was placed in the bookbuilding process. As a result, class A achieved a price of 1-month BBSW (Bank Bill Swap Rate, the Australian reference interest rate) plus 90 basis points; class B increased by 135 basis points. The order book was oversubscribed 2.05 times in class A and 2.66 times in class B at the placement price.

The following tranches were placed:

Class A:        887 million AUD
Rating:         [AAA(sf)/Aaa(sf)/AAAsf] (S&P/Moody's/Fitch)
ISIN:              AU3FN0050589

Class B:        50 million AUD
Rating:         [A+(sf)/Aa3(sf)/AA-sf] (S&P/Moody's/Fitch)
ISIN:              AU3FN0050597
As part of the transaction, a preliminary diversified pool of receivables from approximately 24,500 financing agreements was marketed. Approximately 75 percent of these are from new car contracts, 25 percent from used car financing. Bank of America Merrill Lynch and RBC Capital Markets acted as joint lead managers.

In the first half of 2019, ABS contributed around EUR 39.4 billion or 18 percent of the refinancing of the Volkswagen Financial Services division.
Information for editors:

Volkswagen Financial Services is 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 and Canada 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).

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