The European ABS primary market currently has two new issues in the pipeline.
Volkswagen Bank announced its Auto-ABS DRIVER 7 deal while NIBC Bank its €750 million ($1.02 billion) DUTCH XV MBS issue - both to be priced and launched this week.
“We expect these deals to generate good demand and encourage other issuers to tap the market,” said Unicredit trading analysts.
According to a Bloomberg report, NIBC Bank, which debuted its deal last week, has set price guidance on the €182 million A1 tranche is 110 to 115 basis points over one-month Euribor. On the longer-dated, €531 million A2s, it is in the area of 145 basis points over one-month Euribor.
Volkswagen also began marketing its €475 million ($648 million) auto loan receivables securitization deal called Driver Seven last week.
The deal has on offer €475.5 million triple-A notes and a €17.5million single-A plus rated notes. The Class B note in the deal builds on an earlier placement of Volkswagen’s VCL 11 mezzanine bonds. Driver Seven is a repeat securitization of auto loans originated by the company.
The issuance proceeds will be used to purchase a portfolio of German auto loan receivables originated by Volkswagen. The receivables to be acquired are secured by the financed vehicles and are granted exclusively to German residents.
