Volkswagen Bank successfully placed its EUR 1.29 billion worth Auto ABS (Asset-Backed Securities) transaction Driver 12

• Securitised receivables volume amounts to around EUR 1.29 billion

Braunschweig, Germany, 17-4-2014 — /EuropaWire/ — Volkswagen Bank GmbH, a wholly owned subsidiary of Volkswagen Financial Services AG, has today successfully placed its Auto ABS (Asset-Backed Securities) transaction, Driver 12, on the market with a total volume of around EUR 1.29 billion. Driver 12 is therefore the largest European ABS transaction to be carried out since the outbreak of the financial crisis in 2007. The issue to securitise motor vehicle financing contracts was sold in two tranches at the lower end of the price range. The transaction bears the quality label “Certified by TSI – deutscher Verbriefungsstandard” from True Sale International GmbH.

“This successful transaction demonstrates the leading status of Volkswagen Financial Services as an ABS originator,” says Bernd Bode, Head of Group Treasury and Investor Relations at Volkswagen Financial Services AG. “Auto ABS, the deposit banking business and the money and capital market comprise the key elements of our refinancing, which is based on a policy of strategic diversification,” Bode adds.

The following tranches were placed:

• EUR 1.25 billion Class A notes, ISIN: XS1055190950,

  rating: [AAA(sf)]/[Aaa(sf)]/[AAA(sf)] (DBRS / Moody’s/ S&P)

• EUR 41.3 million Class B notes, ISIN: XS1055191685,

  rating: [A(high)(sf)/[A1(sf)]/[A+(sf)] (DBRS / Moody’s/ S&P)

During the bookbuilding process, the Class A Notes were placed at a price of 1-month Euribor plus 35 basis points and the Class B Notes at plus 70 bp. The high demand shown by 32 investors from nine countries is evidence of the leading role played by Volkswagen Financial Services in the European Auto ABS market.

The average financed value per vehicle is around EUR 14,400. The portfolio is – as is usual in the case of Auto ABS – highly granular. The volume of receivables of the top 20 borrowers makes up a mere 0.41 percent. Driver 12 solely comprises loan receivables from private (99.7 percent) and commercial (0.3 percent) borrowers in Germany. Around 42 percent of the vehicles financed are new vehicles, 45 percent are used vehicles, and 13 percent are demonstration vehicles.

The transaction was co-arranged by Volkswagen Financial Services AG and Raiffeisen Bank International AG. It was marketed by the two Joint Lead Managers Raiffeisen Bank International AG and RBC Europe Limited.

Auto ABS represent an important refinancing instrument for the Volkswagen Financial Services business division of Volkswagen AG. As at 31.12.2013, the refinanced volume amounted to around EUR 16 billion. In 2013 the volume of publicly placed German Auto ABS amounted to EUR 3.25 billion. Worldwide, the volume placed by Volkswagen Financial Services totalled around EUR 9 billion in 2013.

Information for editors

Volkswagen Financial Services is responsible for the worldwide financial services activities of the Volkswagen Group – with the exception of the brands Scania, Porsche and of Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers. Volkswagen Financial Services has a total of 10,945 employees worldwide – including 5,389 alone in Germany (as at: 31.12.2013). The Annual Report 2013 of Volkswagen AG reported total assets for Volkswagen Financial Services of around 115.1 billion euros, an operating result of 1.6 billion euros, and a current portfolio of around 10.7 million contracts.

Contact for press inquiries:

Volkswagen Financial Services
Marc Siedler
Tel.: + 49 5 31 / 2 12-876 75
E-mail: marc.siedler@vwfs.com
www.vwfs.de