Braunschweig, 14 November 2019. Volkswagen Financial Services have successfully placed their highest-volume asset-backed securities (ABS) transaction in Chinese renminbi (RMB) up to now. The transaction had a receivables volume of over RMB six billion (around EUR 776 million), has been subscribed by ten different investors, and is securitized by financing contracts concluded with Volkswagen Finance (China).
"We have grown strongly in China in recent years, with the result that we now have more than 1.2 million financing contracts on our books in that country," says Frank Fiedler, CFO of Volkswagen Financial Services AG. He continues: "The successful placement of what is now our ninth ABS transaction in China provides us with the liquidity we need for our further growth plans."
Tranche A has a volume of RMB 5.37 billion and has received assessments from the Chinese rating agencies Lianhe Global (AAAsf) and China Rating (AA+sf). It also has international ratings from the agencies Moody’s (Aa3sf) and Fitch (AA+sf). During the bookbuilding process, tranche A was placed at a fixed interest rate of 3.49 percent and was oversubscribed three times.
With this transaction, the company has marketed a diversified pool of receivables from more than 108,000 financing contracts. The average financed value per vehicle amounts to around RMB 95,000, or approximately EUR 12,000.
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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 and Canada 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 16,267 employees worldwide – including 7,010 alone in Germany. Volkswagen Financial Services report total assets of around EUR 207.6 billion, an operating result of EUR 2.6 billion and a portfolio of around 20.3 million current contracts (as at: 31.12.2018).
