18th May 2011
Volkswagen Bank GmbH confirms its dominance on EURO ABS market
Successful placement of its loan receivables securitisation totalling EUR 750 million via Royal Bank of Scotland and UniCredit
The securitisation transaction Driver Nine (Driver 9) was successfully placed with a broad range of investors on 18th May. The transaction bears the True Sale International GmbH quality label "Certified by TSI – DEUTSCHER VERBRIEFUNGSSTANDARD". Driver 9 was fully marketed to investors via a roadshow and subsequent bookbuilding process. The syndicate of banks, led by Royal Bank of Scotland plc., UniCredit Bank AG und Volkswagen Bank GmbH, was able to sell the two tranches at the lower end of the price guidance thanks to strong investor demand and high oversubscription levels. "We are very pleased about the success of Driver 9, which is now our third public benchmark ABS transaction this year. The wide market acceptance for our ABS transactions is evidence of the great confidence the investors have in the first-class quality of our receivables," explains Frank Fiedler, CFO of Volkswagen Financial Services AG.
The following tranches were placed in the capital markets:
• EUR 690 million Class A notes, rating: [AAA(sf)]/[AAAsf]/[Aaa(sf)]/[AAA(sf)] (DBRS/Fitch/Moody´s/S&P)
• EUR 24.4 million Class B notes, rating: [A(high)(sf)]/[A+sf]/[A1(sf)]/[A+(sf)] (DBRS/Fitch/Moody´s/S&P)
Driver 9 is the ninth public securitisation transaction conducted by Volkswagen Bank GmbH, Braunschweig, Germany, a wholly-owned subsidiary of Volkswagen Financial Services AG. With the transaction, the company securitised a diversified pool of receivables from more than 60,000 auto loans worth EUR 750 million. The Class A notes were priced at 1-month Euribor plus 60 basis points (starting from a price guidance in the lower plus 60 bp range), and the Class B notes were priced at plus 145 bp (starting from a price guidance in the 140-150 bp range). The order books were oversubscribed 1.35 times (Class A) and subscribed 1.0 times (Class B) at placement pricing levels. The great demand from over 30 investors from nine countries confirms the high standing enjoyed by Volkswagen Bank GmbH as the leading car financing company in the market.
The transaction was co-arranged by Royal Bank of Scotland plc. and Volkswagen Financial Services AG. It was marketed by the two Joint Lead Managers UniCredit Bank AG and Royal Bank of Scotland plc. and by Barclays Capital Credit Agricole CIB and DZ Bank as Managers. During the course of a 3-day roadshow, discussions were carried out with over ten investors in London, Paris and Frankfurt.
Information for editors
Volkswagen Financial Services AG is a wholly-owned subsidiary of Volkswagen AG with headquarters in Braunschweig, Germany. The market leader for automobile financial services in Europe is responsible for the coordination of the worldwide financial services activities of the Volkswagen Group. Volkswagen Financial Services AG has 6,797 employees worldwide – including over 4,297 alone in Germany (as at: 31.12.2010). As at the end of 2010, Volkswagen Financial Services AG reported total assets of more than 65 billion euros, a pre-tax result of 870 million euros, and a portfolio of more than 6.14 million current contracts.
Contacts for press inquiries:
Volkswagen Financial Services AG
Dennis Eisenhauer (Press Officer)
Tel.: + 49 5 31 / 2 12- 55 41
E-mail: dennis.eisenhauer@vwfs.com
www.vwfs.de
Stefan Rolf (ABS Structuring)
Tel.: + 49 5 31 / 2 12-37 25
E-mail: stefan.rolf@vwfs.com
www.vwfs.de
The Royal Bank of Scotland plc.
Markus Reule (FI Structured Finance)
Tel.: +44 207 085 8078
E-mail: markus.reule@rbs.com
www.rbs.com
UniCredit Bank AG
Deniz Stoltenberg (Structured Capital)
Tel.: +49 89/ 378 12679
E-mail: deniz.stoltenberg@unicreditgroup.de
www.unicreditgroup.eu