Volkswagen Financial Services U.K. is pooling £750 million ($1.14 billion) of U.K. auto loan receivables to back sterling denominated bonds issued from its U.K. Driver trust.
Standard & Poor’s is rating the deal, called Driver U.K. three. On offer are ‘AAA’ rated, class A notes with 24% credit enhancement and ‘A+’ rated, class B notes with 15.2% credit enhancement. The bonds have a legal final maturity of January 2024. At closing the Driver U.K. will also issue an unrated subordinate loan.