Braunschweig, 8 April 2018
Volkswagen Financial Services successfully placed Auto ABS
• Volume of receivables amounts to around EUR 750 millio
• Volume of refinancing by Auto ABS amounts to nearly EUR 26 billion
Volkswagen Financial Services have successfully placed their 23rd Auto Asset-Backed Securities (ABS) transaction to securitise leasing contracts, VCL 23, on the market with a volume of around EUR 750 million. In comparison to the previous year, the proportion of auto ABS transactions in the refinancing mix of Volkswagen Financial Services has increased during the 2015 financial year. With a volume of nearly EUR 26 billion (previous year: EUR 21 billion), Auto ABS transactions contributed more than 16% (previous year: 15%) towards the refinancing of Volkswagen Financial Services.
“Auto ABS are an important instrument in our refinancing mix. We are very satisfied with the development of our ABS programs in recent years as well as with the transaction VCL 23. Hence, we will be significantly expanding the scope of ABS and introducing further countries and currencies into the overall programme”, says Frank Fiedler, CFO of Volkswagen Financial Services AG. He adds: "Specifically, we are planning new ABS programmes in Italy and Korea.”
The VCL 23 transaction was placed in a bookbuilding process. The Class A Notes were priced at 1-month Euribor plus 55 basis points, and the Class B Notes were priced at plus 135 basis points. The order books were oversubscribed 1.55 times (Class A) and 4.1 times (Class B) at placement pricing levels.
The following tranches were placed:
• Class A: EUR 702 million
Rating: [AAA(sf)/Aaa(sf)/AAA(sf)] (Creditreform/Moody‘s/S&P)
• Class B: EUR 18.7 million
Rating: [A+(sf)/A1(sf)/AA-(sf)] (Creditreform/Moody‘s/S&P)
With the transaction, the company securitised a diversified pool of receivables from around 74,000 leasing contracts. The transaction bears the True Sale International GmbH quality label "Certified by TSI – Deutscher Verbriefungsstandard". The VCL 23 transaction was co-arranged by Volkswagen Financial Services AG and HSBC Bank plc. It was marketed by the Joint Lead Managers HSBC Bank plc and Mitsubishi UFJ Securities International plc.
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 and the financial service companies in the USA, Canada, Argentina and Spain that be-long directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania and Porsche brands 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 15,182 employees worldwide – including 6,513 alone in Germany (as at: 31.12.2015). Volkswagen Financial Services reported total assets of around EUR 157.9 billion, an operating result of EUR 1.9 billion euros and a portfolio of around 16.6 million current contracts.
Contact for press inquiries:
Volkswagen Financial Services