Volkswagen Financial Services plans to issue a securitization backed by U.K. auto loans, according to Standard & Poor’s.
Credit Suisse and HSBC are joint lead managers on the deal. Barclays, Citigroup and RBC Europe are co-managers.
The deal, ABS, Driver UK Two, will offer two classes of notes rated AAA’ and A+’. The deal is also structured with an unrated subordinated loan. The notes are due January 2023. Sizing of the tranches will be determined based on investor demand.
The pool is backed by £750 million portfolio of U.K. auto loan receivables, which Volkswagen Financial Services (UK) Ltd. originated and granted to its private and small-commercial customer base. This is the issuer’s fourth U.K. auto loan transaction.
The structure allows for additional, eligible receivables to be added during the six-month revolving period.
Volkswagen Financial Services is a wholly-owned subsidiary of Volkswagen Financial Services AG, a captive arm of the car manufacturer Volkswagen AG. Volkswagen Financial Services provides financial services to support all of the Volkswagen group automotive brands, which includes Volkswagen, Audi, Bentley, SEAT, Skoda, and Porsche.
