Volkswagen Financial Services place auto ABS worth one billion euros
Issuance meets criteria of the STS securitisation regulation
Strong investor demand leads to increase the issuance volume
Braunschweig, 23 October 2019. Volkswagen Financial Services have placed an asset backed securities (ABS) transaction with a volume of one billion euros secured by leasing receivables. Due to the high demand from investors, the volume was increased by a total of around 250 million euros compared to the originally targeted transaction amount. At the same time, an oversubscription of about 1.5 times was achieved. In the bookbuilding process, tranche A was placed at a price of 1-month Euribor plus 17 basis points; tranche B was placed at plus 78 basis points.
Transaction VCL 29 will receive the STS status for particularly high-quality securitizations newly introduced at the beginning of the year. The abbreviation "STS" stands for simple, transparent and standardized securitizations. The STS quality criteria are checked by the STS Verification International GmbH (SVI), a verification institution approved by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).
Class A: 941 million euros
Expected Rating: [Creditreform/S&P/Fitch] [AAAsf/AAA(sf)/AAAsf]
Class B: 19 million euros
Expected Rating: [Creditreform/S&P/Fitch] [AA-sf/AA-(sf)/A+sf]
With the transaction, a provisional diversified pool of receivables was securitized from nearly 76,000 leasing contracts. The average financed value per vehicle amounts to around EUR 11,000. 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 BNP Paribas and LBBW.
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).