Volkswagen Financial Services successfully market auto ABS
Auto ABS transaction by Volkswagen Leasing GmbH worth EUR 1 billion
Strong investor demand leads to increase in issue volume
Further auto ABS transaction by Volkswagen Financial Services Australia PTY Ltd. worth AUD 600 million (around EUR 384 million)
Braunschweig, 21 October 2021. Volkswagen Financial Services have successfully placed an auto asset-backed securities (ABS) transaction with a volume of EUR 1 billion. The original volume of issue was increased by EUR 250 million due to the high demand from investors. With this transaction, the company has securitized a preliminary diversified pool of receivables from more than 87,000 leasing contracts of Volkswagen Leasing GmbH. The proportion of securitized leasing contracts for vehicles with electric or hybrid drive rose to over 23 percent. The issuance again meets the quality criteria stipulated by the EU Regulation on STS (simple, transparent and standardized) securitization. The two tranches placed were several times oversubscribed by investors.
Tranche A (ISIN: XS2398654702) has a volume of EUR 941.1 million and ratings from DBRS and Fitch (Aaa(sf) / AAAsf). It was placed at a price of 1-month Euribor plus 10 basis points and was oversubscribed 1.8 times. In addition, the securities can be deposited with the European Central Bank as eligible collateral.
Tranche B (ISIN: XS2398654967) was priced at 1-month Euribor plus 80 basis points. It is rated by DBRS and Fitch (AA(low)(sf) / AAsf). The volume amounts to EUR 21.5 million. Tranche B was oversubscribed 1.5 times.
Volkswagen Financial Services also placed an ABS transaction with a volume of AUD 600 million (around EUR 384 million). The transaction is secured by around 15,400 financing contracts of Volkswagen Financial Services Australia PTY Ltd. The two tranches marketed had a volume of AUD 526.2 million (A tranche) and AUD 33 million (B tranche) and were oversubscribed by investors 1.8 times and 2.5 times respectively.
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).