New market standard: Volkswagen Financial Services issue first ABS transaction for leased vehicles in Sweden
Receivables volume of more than SEK nine billion
More than 40,000 leasing contracts securitized
Goal: Promote growth in the leasing business
Braunschweig, 27 March 2023. Volkswagen Financial Services is continuing with its diversified refinancing strategy and has become the first company in the market to place an auto ABS transaction (ABS=Asset Backed Security) based on a securitized pool of leasing contracts in Swedish kronor. "With this auto ABS transaction, we are not only setting a completely new market standard in Sweden, but also laying the foundation for further growth in the leasing business, which, as in other markets, is becoming increasingly popular," says Dirk Bauer, Head of Markets at Treasury of Volkswagen Bank GmbH.
The transaction, with a receivables volume of SEK 9.1 billion (approximately EUR 813 million), is backed by a pool of leasing contracts of Volkswagen Finans Sverige (VFS). In a private placement, tranche A priced at a floating rate of 100 bps above 1-month STIBOR and tranche B at a floating rate of 160 bps above 1-month STIBOR.
The Class A tranche, with a volume of SEK 6.56 billion, has achieved the highest rating from the rating agencies Moody's Investors Service with Aaa (sf), DBRS Morningstar with AAA (sf), and Scope Ratings with AAA (sf). The Class B tranche, with a volume of SEK 0.91 billion, has achieved ratings from the same agencies of Aa3 (sf), AA(low) (sf) and AA- (sf), respectively.
As part of the transaction, a diversified pool of receivables from more than 40,000 leasing contracts have been securitized.
The first auto ABS transaction in Sweden is one of several recent international ABS activities of Volkswagen Financial Services. Most recently, inaugural ABS transactions were also placed for Volkswagen Financial Services in Poland and Belgium.
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 service business of the Scania brand and of Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, bank and insurance activities, fleet management and mobility services. Volkswagen Financial Services have a total of 17,713 employees worldwide – including 7,692 alone in Germany. Volkswagen Financial Services report total assets of around EUR 240 billion, an operating profit of EUR 5.60 billion, and a portfolio of around 22.0 million current contracts (as at: 31.12.2022).