Volkswagen is readying its first auto loan ABS backed by Japanese loans from its Driver program, according to a Reuters report.

The move marks the auto manufacturer's most recent move in its ongoing expansion of this particular program. This year Vokswagen issued its first Spanish auto loan securitization, which was backed by receivables originated by VW Finance within Spain.

The newest transaction will include JPY25 billion of triple-A rated notes accounting for 91.5% of the capital structure, according to the report. The joint leads, Mitsubishi UFJ Morgan Stanley and the Royal Bank of Scotland, will market the deal on a semi-public basis.

Volkswagen said earlier this year that it was also preparing to sell a securitization deal backed by Chinese loans by the end of 2012, according to a Bloomberg report.

The company said in the report that the timing of the deal would depend on how soon the Chinese government can create legislation allowing for securitization deals in the country.

According the report, Volkswagen is planning the securitization given the growing vehicle sales in China.

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