Volkswagen Leasing priced an upsized 1 billion ($1.28 billion) German auto lease securitization this week.
The deal, VCL Multi-Compartment S.A., Compartment VCL 20 was originally sized at 723 million. It is the issuers 26th publicly rated German auto lease transaction.
The transaction, rated by Standard & Poor’s, DBRS and Fitch Ratings consists of two tranches that priced at the lower end of initial guidance. The AAA’/ AAA’/ AAA’ rated class A notes were sold at 27 basis points over one-month Euibor and the A+’ / A’/ A+’ rated, class B notes were sold at 65 basis points over one month Euribor. Both tranches mature on June 21, 2020.
In a press release, Volkswagen said that the deal was oversubscribed 1.5 times on the class A note and 1.1 times on the class B notes.
BNP Paribas and DZ Bank are joint lead managers; Bayerische Landesbank, Llyods and HSBC were hired as co-managers.
All of the receivables to be securitized have previously been refinanced through a warehousing facility, VCL Master S.A., Compartment 1.
This is Volkswagen's second deal this month; is previously priced a U.K. auto loan deal, Driver UK Two. Sized at £1.2 billion ($1.96 billion), that deal is currently the highest-volume Auto ABS transaction conducted in the U.K. currency.
The transaction securitized motor vehicle financing contracts and was sold in two tranches that priced at the lower end of guidance. The class A notes priced at 42 basis points over one-month Libor and the class B Notes priced at 90 basis points.