Volkswagen Leasing announced a publicly placed German auto loan securitization that will offer investors two tranches.
Standard & Poor's has assigned a preliminary 'AAA ' rating to the deal’s asset-backed floating-rate notes, which are structured with credit enhancement of 45%.
At closing, the deal, VCL Master Residual Value, Compartment 1, will also issue an unrated subordinated loan.
The presale report did not indicate how large the tranches would be sized. Volkswagen Financial Services AG and HSBC Bank are lead arrangers on the deal. Norddeutsche Landesbank, RBC Europe, and SEB AG are named co-managers on the deal.
The deal is backed by German auto lease residual values originated by Volkswagen. The transaction has an initial seven-month revolving period.