Braunschweig, 20 February 2019
Volkswagen Financial Services securitises Japanese car loans and issues bonds
- ABS receivables volume of around 70 billion yen
- Bond issues in Euro, Pound, Ruble and Real
Braunschweig, 20 February 2019. Volkswagen Financial Services started the 2019 financial year with numerous issuances. The eighth Japanese auto asset-backed securities (ABS) transaction was successfully placed, as were bonds denominated in euros, British pounds (GBP), Russian rubles (RUB) and Brazilian real (BRL). The issues in the various currencies are in line with Volkswagen Financial Services' strategy of refinancing itself locally in the respective markets using various refinancing instruments.
The ABS transaction “Driver Japan eight”, which is secured by receivables from Volkswagen Financial Services Japan Ltd., has a volume of nearly 70 billion yen, equivalent to approximately 559 million euros. The senior tranche (65 billion yen) was given the highest rating by the rating agencies (Moody's: Aaa, Fitch: AAA, R&I: AAA) and placed at a fixed interest rate of 0.1 percent p.a. The order book was more than two times oversubscribed at the placement price in the senior tranche.
In addition, Volkswagen Financial Services AG issued a bond (ISIN: XS1952701982) with a total volume of 500 million euros. The bond has a term of two years and the interest rate is 3-month Euribor plus 0.80 percent p.a. In January, Volkswagen Bank GmbH had already placed four bonds with a total volume of 2.5 billion euros.
A total of GBP 350 million was issued by Volkswagen Financial Services N.V. This corresponds to approximately 400 million euros. The bond (ISIN: XS1949711094) has an interest rate of 2.75 percent p.a. and runs for slightly more than four years.
The bond denominated in rubles (ISIN: RU000A1003L1) and bears interest at 8.9 percent p.a. over three years. It was issued by Volkswagen Bank RUS LLC. The volume amounts to ten billion rubles (about 134 million euros).
In Brazil, the local company Banco Volkswagen S.A. issued its seventh bond in "Letra Financeira" format (ISIN: BRBVKWLFI603). The interest rate is 103 percent p.a. of the CDI (Certificados de Depósito Interbancário), the Brazilian reference interest rate. The term is two years. The volume of 500 million BRL is equivalent to approximately 120 million euros.
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).
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