Volkswagen Financial Services issue various bonds totaling around 4.8 billion euros
- Corporate bonds from Volkswagen Leasing GmbH worth three billion euros
- Auto ABS transaction by Volkswagen Leasing GmbH worth one billion euros
- Auto ABS transaction by Volkswagen Finance (China) worth six billion renminbi (around 780 million euros)
Volkswagen Leasing GmbH has carried out the transaction with the highest volume issued by Volkswagen Financial Services so far this year. The three bonds have a total volume of EUR one billion and terms of three years and two months, five years and two months and eight years and two months – with maturity-linked interest rates of 0.0 percent, 0.375 percent and 0.625 percent. The transaction was oversubscribed more than 2.7 times. All the bonds are guaranteed by Volkswagen Financial Services AG and rated BBB+ by Standard & Poor's and A3 by Moody's.
With its second auto asset-backed securities (ABS) transaction in 2021, which has a volume of around one billion euros, Volkswagen Leasing GmbH has securitized a preliminary diversified pool of receivables from around 90.000 leasing contracts. The issuance meets the quality criteria of the STS Securitization Regulation. Tranche A (ISIN: XS2338902278) has a volume of EUR 941 million and ratings from Fitch and DBRS (AAA(sf)/AAA(sf)). It was placed at a price of 1-month Euribor plus 10 basis points and was oversubscribed 2 times. In addition, the securities can be deposited with the European Central Bank as eligible collateral. Tranche B (ISIN: XS2338903169) was placed at 1-month Euribor plus 74 basis points. It is rated by Fitch and DBRS (AA(sf)/AA(low)(sf)). The volume amounts to EUR 21.5 million. Tranche B was oversubscribed 1.7 times.
Volkswagen Finance (China) has successfully placed an auto ABS transaction in Chinese renminbi (RMB) with investors. The transaction has a receivables volume of RMB six billion renminbi (around EUR 780 million) and is backed by more than 90,000 financing contracts concluded with Volkswagen Finance (China). Tranche A, which has a volume of around RMB 5.3 billion, was placed at a fixed interest rate of 3.2 percent and was oversubscribed 1.4 times. It has received assessments from the Chinese rating agencies China Lianhe Credit Rating Co., Ltd. (AAAsf) and China Bond Rating Co., Ltd. (AA+sf). It also has an international rating from Moody's (Aaasf).
As at 31 December 2020, the most important ingredients in the refinancing mix of Volkswagen Financial Services are the money and capital markets (EUR 52.6 billion/23.3 percent), auto asset-backed securities (EUR 39.7 billion/17.6 percent) and customer deposits (EUR 28.7 billion/12.7 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 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 16,558 employees worldwide – including 7,472 alone in Germany. Volkswagen Financial Services report total assets of around EUR 225.6 billion, an operating result of EUR 2.8 billion and a portfolio of around 21.9 million current contracts (as at: 31.12.2020).
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