Volkswagen is in the market with a $1 billion securitization of auto loans.

Bank of America Merrill Lynch and Citi are lead managers on the deal, according to a deal prospectus filed with Securities and Exchange Commission.

The deal, Volkswagen Autolease Trust 2014-A has been assigned preliminary ratings by Moody's Investors Service.

Four tranches of class A notes are rated ‘Aaa’. The class A-2 notes will offer a total $470 million but will be split into floating rate and fixed rate notes.

The notes are backed by a pool of closed-end retail auto lease contracts and related new Volkswagen and Audi vehicles.

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