BMW Group’s Chinese financial services subsidiary, BMW Automotive Finance (China), has placed its first securitization of Chinese retail auto loans.

The deal, Bavaria Sky China 2014-1, which priced today, is the first placement of an asset backed securities in China by a European automaker. Volkswagen is also marketing $800 million renminbi ($128 million) securitization of Chinese auto loans. And in May Ford Motor Credit completed a deal of the same size.

Volkswagen obtained ratings from both Fitch Ratings and Moody’s Investors Service for its deal, while BWM and Ford relied on Chinese ratings agencies.  

In a statement emailed to ASR, a spokesman said BMW’s class A notes priced at 4.8% and its class B notes priced at 8.09%. The email did not list the size or the tenor of the tranches, but Chinese authorities have given several foreign auto finance companies approval to finance a total of $800 million renminbi each.

The notes “were met by huge interest by both domestic and international investors with onshore RMB investment capabilities,” the email stated. It said the transaction diversifies BMW Automotive Finance (China)’s funding sources and will support its growth.

Established in China in 2010, BMW Automotive Finance (China) provides financing for purchases of BMWs and MINIs.


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