Braunschweig, Germany, 20th January 2012
Volkswagen Financial Services merchandises Japanese car loans for the first time to a broad investor base
Successful securitisation of Japanese receivables totalling JPY 25 billion (about EUR 254 million)
The securitisation transaction Driver Japan One was successfully placed today. It is the first Auto ABS (Asset-Backed Securities) transaction by a European car manufacturer in Japan so far which was marketed to a broad range of Japanese investors. It is backed by receivables of the Tokyo-based Volkswagen Financial Services Japan Ltd. Japan is the fourth country following Germany, UK and Spain, in which Volkswagen Financial Services is engaged with its driver platform. Frank Fiedler, CFO of Volkswagen Financial Services AG, explains: “With the international rollout of our driver platform we have established a successful program and a strong brand on the capital markets. Similar to the module strat egy in our automobile sector, we offer the Programs Driver and VCL in the securitization business as well: Central structuring of local assets ensures a high level of acceptance among our investors. With Driver Japan One the modular concept is also used by Japan now, which has thereby a wide range of local funding sources available.”
The following tranche was placed:
- JPY 25 billion note, rating:
[Aaa (sf)]/[AAA (sf)]/[AAA] (Moody´s/S&P/R&I)
Driver Japan One is the first securitisation transaction broadly merchandised by Volkswagen Financial Services Japan Ltd., a wholly-owned subsidiary of Volkswagen Financial Services AG. The transaction was fully placed with a broad range of investors. Diversified receivables from around 17.000 Japanese auto loans worth JPY 25 billion (equivalent to about EUR 254 million) were securitised. The Note was priced at 31 basis points over the reference interest rate. The order books were oversubscribed 3.5 times at placement pricing levels. The great demand from 18 Japanese investors is further evidence of the leading role played by Volkswagen Financial Services AG in the international Auto ABS market and by Volkswagen Financial Services Japan Ltd. as a lender for the Japanese automotive market.
The transaction was co-arranged by RBS Securities Japan Ltd., Mitsubishi UFJ, Morgan Stanley Securities and Volkswagen Financial Services AG.
Information for editors
Volkswagen Financial Services AG is a wholly-owned subsidiary of Volkswagen AG with headquarters in Braunschweig, Germany. The market leader for automotive 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