Volkswagen is marketing  €743.3 million ($950 million) of securities backed by German auto loans, according to Standard & Poor’s.

Mitsubishi UFJ Securities International is leading the transaction.

Private Driver 2014-4 UG will issue €691 million of ‘AAA’ rated securities and €22.8 million of ‘A+’ rated securities. Both bonds mature on September 2020. The class A notes are structured with credit enhancement at 9% and the class B notes have credit enhancement at 5.95%.

The structure also includes €28.9 million of unrated subordinated notes.

The pool is comprised of 48,008 borrowers with 48,472 loan contracts. The loans have a weighted average original term of four years and on average have a remaining life of 3.2 years. Most of the loans, or 67% of the pool, are for new vehicles.

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