Press Release

Braunschweig, 24 February 2022. Volkswagen Financial Services have placed an asset-backed securities (ABS) transaction secured by lease receivables with a volume of one billion euros. The original volume of issue was increased by EUR 250 million due to high demand from investors. A total of two tranches were marketed to investors, both of which were several times oversubscribed. The issuance once again meets the quality criteria of the STS Securitization Regulation. With this transaction, the company has securitized a preliminary diversified pool of receivables from more than 87,000 leasing contracts of Volkswagen Leasing GmbH. The proportion of securitized leasing contracts for vehicles with electric or hybrid drive rose to 29 percent.

Tranche A (ISIN: XS2444417773) has a volume of EUR 941.1 million and ratings from DBRS and S&P (AAA(sf) / AAA(sf)). It was placed at a price of 1-month Euribor plus 15 basis points and was oversubscribed 1.7 times. In addition, the securities can be deposited with the European Central Bank as eligible collateral.

Tranche B (ISIN: XS2444417930) was placed at a price of 1-month Euribor plus 85 basis points. It is rated by DBRS and S&P (AA(low)(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 2021, asset-backed securities issues amounting to EUR 40.2 billion accounted for more than 17 percent of the refinancing for Volkswagen Financial Services. Other significant constituents of the funding mix were bonds with a figure of EUR 54.4 billion (23.3 percent) and customer deposits with EUR 26.7 billion (11.5 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 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 16,558 employees worldwide – including 7,472 alone in Germany. Volkswagen Financial Services report total assets of around EUR 225.6 billion, an operating result of EUR 2.8 billion and a portfolio of around 21.9 million current contracts (as at: 31.12.2020).