Press Release

Braunschweig, 25 February 2021. Volkswagen Financial Services have placed their first European auto asset-backed securities (ABS) transaction in 2021. The emission has a total volume of EUR 1 billion and the two tranches sold were several times oversubscribed by investors. With this transaction, the company has securitized a preliminary diversified pool of receivables from more than 91,000 leasing contracts of Volkswagen Leasing GmbH. The proportion of securitized leasing contracts for vehicles with electric or hybrid drive increased to over five percent. The issuance again meets the quality criteria stipulated by the EU Regulation on STS (simple, transparent and standardized) securitization. "The successful placement of the first auto ABS bond in 2021 once again demonstrates our leading role in the European ABS market," says Frank Fiedler, CFO of Volkswagen Financial Services. He adds: "The high demand and low refinancing costs in what is still a challenging market environment defined by the pandemic are proof of the high level of trust and confidence placed in us by our investors."

Tranche A (ISIN: XS2296660611) has a volume of EUR 941 million and ratings from Moody's and Standard & Poor's (Aaa(sf) / AAA(sf)). It was placed at a price of 1-month Euribor plus 15 basis points and was oversubscribed 2.5 times. In addition, the securities can be deposited with the European Central Bank as eligible collateral.

Tranche B (ISIN: XS2296660702) was placed at a price of 1-month Euribor plus 75 basis points. It is rated by Moody's and Standard & Poor's (A1(sf) / AA-(sf)). The volume amounts to EUR 21.5 million. Tranche B was oversubscribed 2.5 times.

The STS quality criteria (simple, transparent, standardized) are checked by STS Verification International GmbH (SVI), a third-party verifier authorized by the German Federal Financial Supervisory Authority (BaFin).

At the end of June 2020, asset-backed securities issues amounting to EUR 41.2 billion accounted for around 19 percent of the refinancing for Volkswagen Financial Services. Other significant constituents of the funding mix were bonds with a figure of almost EUR 55 billion (around 25 percent) and customer deposits with EUR 32 billion (around 14 percent).
 
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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 16,571 employees worldwide – including 7,414 alone in Germany. Volkswagen Financial Services report total assets of around EUR 223.5 billion, an operating result of EUR 2.96 billion and a portfolio of around 21.5 million current contracts (as at: 31.12.2019).