Braunschweig, Germany, 13th July 2012
Volkswagen Financial Services AG merchandises Brazilian car loans for the first time
Successful securitisation of Brazilian receivables totalling BRL one billion (about EUR 400 million)
The securitisation transaction Driver Brasil One was successfully placed last Friday. It is the first Auto ABS (Asset-Backed Securities) transaction backed by receivables of the Banco Volkswagen S.A., located in Sao Paulo. Brazil is therefore the fifth country following Germany, UK, Spain and Japan, in which Volkswagen Financial Services is engaged with its Driver platform. Driver Brasil One was fully marketed to investors via a roadshow and subsequent book building process. The syndicate of banks led by Banco Itaú BBA S.A. and HSBC Corretora de Títulos e Valores Mobiliários S.A. was able to sell the two tranches at the lower end of the price range thanks to the great investor demand and high oversubscription levels. Frank Fiedler, CFO of Volkswagen Financial Services AG, explains: “Driver Brasil One is the first car ABS transaction of a European automobile manufacturer and one of the largest ABS transactions in the Brazilian market at all. With Driver Brasil One our successful securitisation program is also at our disposal as a refinancing source in Brazil now. The basis of the success when rolling out our programs VCL and Driver internationally is their uniform structure. The underlying principle of a "modular concept", analogous to the MQB (modular construction kit) of the Volkswagen Group, will be adjusted by us only to the national market requirements. The resulting transparency ensures a high level of acceptance at the capital market and with our investors.”
The following tranche was placed:
- BRL 875 million note tranche A, Rating:
- BRL 55 million note tranche B, Rating:
Driver Brasil One is the first securitisation transaction by Banco Volkswagen S.A., a wholly-owned subsidiary of Volkswagen Financial Services AG. The transaction was fully placed with a broad range of investors. Diversified receivables from around 55,400 Brazilian auto loans worth BRL one billion (equivalent to about EUR 400 million) were securitised. Class A was put at a price of 125 base points above the reference price, Class B came to plus 205 base points. The order books were oversubscribed 2.4 times (Class A) and 2.6 times (Class B) at placement pricing levels. The great demand from over 40 Brazilian investors is further evidence of the leading role played by Volkswagen Financial Services AG in the international Auto ABS market and by Banco Volkswagen S.A as a lender for the Brazilian automotive market.
The transaction was co-arranged by Volkswagen Financial Services AG and Banco Itaú BBA S.A.. It was marketed by the two Joint Lead Managers Banco Itaú BBA S.A. and HSBC Corretora de Títulos e Valores Mobiliários S.A..
Information for editors
Volkswagen Financial Services AG is a wholly-owned subsidiary of Volkswagen AG with headquarters in Braunschweig, Germany. The market leader for automotive financial services in Europe is responsible for the coordination of the worldwide financial services activities of the Volkswagen Group. Volkswagen Financial Services AG has 7,322 employees worldwide – including over 4,599 alone in Germany (as at: 31.12.2011). As at the end of 2011, Volkswagen Financial Services AG reported total assets of more than 77 billion euros, a pre-tax result of 933 million euros, and a portfolio of more than 6.85 million current contracts.
Contacts for press inquiries:
Volkswagen Financial Services AG
Dennis Eisenhauer (Press Officer)
Tel.: + 49 5 31 / 2 12-55 41
Ulrich Hauswaldt (Investor Relations)
Tel.: + 49 5 31 / 2 12-30 71