Braunschweig, 6 April 2018. Volkswagen Financial Services have securitised receivables totalling over 750 million Australian dollars (AUD) (around EUR 470 million) and successfully placed the transaction with investors. The Auto ABS (Asset Backed Securities) transaction Driver Australia five is secured solely by receivables of Volkswagen Financial Services Australia Pty Ltd. Driver Australia five is the highest-volume Auto ABS transaction conducted up to now by Volkswagen Financial Services in Australian dollars.
During the bookbuilding process, the Class A notes were placed at a price of one-month BBSW (Bank Bill Swap Rate, the Australian reference interest rate) plus 93 basis points and the Class B notes at plus 150 basis points. The order books were oversubscribed three times (Class A) at placement pricing levels.
The following tranches were placed:
Class A: AUD 661,5 million
Rating: [AAA(sf)/AAAsf] (S&P/Fitch)
Class B: AUD 37.5 million
Rating: [A+(sf)/A+sf] (S&P/Fitch)
Auto ABS make a substantial contribution to the funding volume of Volkswagen Financial Services. 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).
With this transaction, the company marketed a diversified provisional pool of receivables of more than 26,500 financing contracts. Contracts for new vehicles make up around 75 percent of this figure, with 25 percent coming from used vehicle financing. The transaction bears the quality label "Certified by TSI - deutscher Verbriefungsstandard" from True Sale International GmbH. Australia and New Zealand Banking Group Limited and Bank of America Merrill Lynch acted as Joint Lead Managers.
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).
