Volkswagen Financial Services issue Auto ABS with a volume of one billion euros
Issuance meets the criteria of the STS Regulation
Further ABS also issued worth 60 billion Japanese yen
Braunschweig, 27 February 2020. Volkswagen Financial Services have placed an Asset-Backed Securities (ABS) transaction with a volume of one billion euros secured by leasing receivables. The issuance meets the quality criteria of the STS Regulation on securitization (simple, transparent, standardized) and was oversubscribed several times. The STS quality criteria are checked by STS Verification International GmbH (SVI), a verification body approved by the German Federal Financial Supervisory Authority (BaFin).
The ABS was placed with investors in two tranches. Tranche A (ISIN: XS2114331759) has a volume of EUR 941 million and ratings from Creditreform, Standard & Poor's and Fitch (AAAsf/AAA(sf)/AAAsf). It was placed at a price of 1-month Euribor plus 16 basis points. Tranche A was oversubscribed 1.7 times.
In addition, Tranche B (ISIN: XS2114331916) was placed at a price of 1-month-Euribor plus 70 basis points. It is also rated by Creditreform, Standard & Poor's and Fitch (AA-sf/AA-(sf)/A+sf). The volume amounts to EUR 19 million. Tranche B was oversubscribed 1.9 times.
With this transaction, the company has securitized a preliminary diversified pool of receivables from more than 108,000 leasing contracts of Volkswagen Leasing GmbH.
In addition, Volkswagen Financial Services also marketed a Japanese ABS transaction with a volume of JPY 60 billion (around EUR 500 million). The transaction is secured by receivables of Volkswagen Financial Services Japan Ltd.
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 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 and a portfolio of around 20.3 million current contracts (as at: 31.12.2018).