Volkswagen Bank said today that it sold two tranches from its Driver Thirteen, a German auto loan securitization, at the lower end of price talk.

The 1.9-year, ‘AAA’ rated €691 million ($791 million) tranche A was sold at 25 basis points over one month Euribor. The 2.4-year, ‘A’ rated €25 million class B notes priced at 65 basis points over one month Euribor, according to a company press release. DBRS rated the deal.

The order book was oversubscribed 2.85 times for the class A notes and 1.9 times for the Class B notes.   

The securitized portfolio consists of a pool of 54,000 auto loan receivables to retail and commercial customers secured by new and used vehicles.

The loans in the pool have a weighted average original term of four years, and auto loans representing new vehicles make up 54.94% of the receivables. The loans have weighted average payment history of 7.59 months.

VW Bank’s retail portfolio has continued to grow from an average of €15 billion for 2013 to €17.36 billion at the end of September 2014, according to DBRS' presale report. Since 2010, there has been an ongoing shift in the portfolio mix with new car balances falling from a peak of 63% to 56% as at September 2014. The shift to include a greater percentage of used loans has been a result of the company’s strategy to increase penetration rates for used car financing.

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