Braunschweig/Beijing, July 8, 2016
Volkswagen Financial Services securitise Chinese auto loans
- Receivables volume totals around three billion renminbi
Volkswagen Financial Services have successfully placed their fourth Chinese Auto Asset-Backed Securities (ABS) transaction. The securitisation transaction Driver China four, which is backed by vehicle financing contracts from Volkswagen Finance China, has a volume of around three billion renminbi (RMB), or approximately 405 million euros. The order books were fully covered during the bookbuilding process, with orders placed by both, Chinese and international investors; tranche A was placed at a fixed interest rate of 3.16% and tranche B at 4.69%. The order books were oversubscribed 1.41 times for the Class A notes and 2.07 times for the Class B notes at placement pricing levels.
With the transaction, the company securitised a diversified pool of receivables from around 53,000 financing contracts. The average outstanding financed value per vehicle amounts to around RMB 57,000, or approximately EUR 7,700. In addition to local ratings, the transaction has also been given international ratings and bears the quality label "Certified by TSI – deutscher Verbriefungsstandard" from True Sale International GmbH.
The following tranches were placed:
- RMB 2.632 billion Class A notes,
Local rating: Lianhe Ratings/China Bond Rating [AAA/AA+]
International rating: Moody’s/S&P [Aa3(sf)/AA(sf)]
- RMB 135 million Class B notes,
Local rating: Lianhe Rating/China Bond Rating [AA-/A+]
International rating: Moody’s/S&P [A3(sf)/BBB+(sf)]
The marketing of the transaction was carried out by the lead underwriter China Merchants Securities Co., Ltd., the joint lead underwriter HSBC Bank (China) Co., Ltd., and the co-lead Underwriter Industrial and Commercial Bank of China Co., Ltd.
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 belong 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. Volkswagen Financial Services reported total assets of around EUR 157.9 billion, an operating result of EUR 1.9 billion and a portfolio of around 16.6 million current contracts (as at: 31.12.2015).
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