Braunschweig, 23 April 2018
Volkswagen Bank GmbH has securitised Italian auto loans for the first time
- Volume of receivables amounts to more than EUR 500 million
- First transaction of the Italian branch of the Volkswagen Bank
- Further funding activities: bond issues of NOK 500 million and AUD 400 million
Volkswagen Bank GmbH has securitised Italian automobile credits and placed with investors for the first time. The Auto ABS (Asset Backed Securities) transaction Driver Italia one is secured solely by receivables of the Italian branch of the Volkswagen Bank GmbH. The securitisation transaction has a volume of more than 500 million euros.
"We are happy about the successful debut transaction. Italy is a major market for Volkswagen Financial Services. Consequently, we want to use our high-quality loan portfolio to further geographically diversify our ABS refinancing, "says Bernd Bode, Head of Group Treasury and Investor Relations at Volkswagen Bank GmbH, adding: "The broad lineup of Volkswagen Financial Services in relation to refinancing instruments and currencies has also been proved by the successful issuance in Norwegian kroner and Australian dollar."
During the bookbuilding process, the Class A Notes were placed at a price of 1-month Euribor plus 26 basis points and the Class B Notes at plus 50 basis points. The order books were oversubscribed 1.3 times (Class A) and 4.5 times (Class B) at placement pricing levels.
Volkswagen Financial Services has grown steadily in the Italian market in recent years. In the last fiscal year, the contract portfolio increased by 20.1 percent to around 730,000 contracts.
The following tranches were placed:
EUR 441.0 million
EUR 14.0 million
With this transaction, the company marketed a diversified provisional pool of receivables of more than 62,000 financing contracts. Contracts for new vehicles make up around 93 percent of this figure, with 7 percent coming from used vehicle financing. The transaction bears the quality label "Certified by TSI - deutscher Verbriefungsstandard" from True Sale International GmbH. Citigroup Global Markets Ltd. and Credit Agricole CIB acted as Joint Lead Managers.
In addition, Volkswagen Financial Services were active on the capital market. Volkswagen Financial Services N.V. issued a bond (ISIN: XS1807499857) with a volume of 500 million Norwegian kroner, around 52 million euros. The term of the security is three years with a coupon of 2.0 percent per annum. In addition, Volkswagen Financial Services Australia Pty Limited placed a bond (ISIN: AU3CB0252328) worth more than 400 million Australian dollars, around 249 million euros, with a term of three years with an annual interest rate of 3.25 percent.
At the end of 2017, Auto ABS transactions amounting to EUR 33.7 billion (previous year: EUR 33.0 billion) accounted for around 18 percent of the refinancing for the Volkswagen Financial Services division. Other significant constituents of the funding mix were bonds with a figure of EUR 32.7 billion (around 18 percent) and customer deposits with EUR 33.5 billion (also around 18 percent).
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, Canada, and Spain 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 15,770 employees worldwide – including 6,670 alone in Germany. Volkswagen Financial Services report total assets of around EUR 186.9 billion, an operating result of EUR 2.5 billion euros and a portfolio of around 19.7 million current contracts (as at: 31.12.2017).
Volkswagen Bank GmbH, which was founded in 1949, is a wholly owned subsidiary of Volkswagen AG. With a balance-sheet total of around 79 billion euros as at December 31st, 2016 Volkswagen Bank has long been Europe’s leading automobile bank. The products and services of Volkswagen Bank GmbH range from the financing of new and used vehicles of all the Group’s brands, over direct banking, to dealer financing.
Contact for press inquiries:
Volkswagen Financial Services AG