Unusual for a non-bank, Siemens AG has set up a commercial paper conduit as a sponsor. The assets securitized will comprise present and/or future receivables of all kinds, including consumer loan receivables, securities and tangible assets.

Siemens Capital Corp. (the administrator) is a corporation organized under the laws of Delaware. The performance and financial obligations of the administrator are guaranteed by Siemens AG.

Simultaneously with the closing of the conduit, Siemens acquired a GBP403m portfolio of hire purchase and lease purchase receivables. The transaction is partially supported by a liquidity facility provided by Siemens AG (as guarantor) and Bayerische Landesbank. Losses on the portfolio will be absorbed by 7% cash collateral, 13.5% seller specific letter of credit, 3.5% excess spread and 5% programme wide letter of credit. Any currency or rate risk is fully hedged.

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