BMW demand exceeds expectations without international ratings

By Tom Porter
19 Jun 2014

BMW has told GlobalCapital it hopes to be a big part of China’s nascent ABS market after printing the first renminbi auto ABS from a European car maker last week. Demand for the deal exceeded expectations despite BMW’s decision not to emulate German competitor Volkswagen by obtaining international ratings.

BMW priced Rmb800m (€94m) of securities backed by retail auto loans originated by its Chinese business in Bavarian Sky China 2014-1, with the AAA-rated 0.6 year Class A notes priced at 4.8% and the A-rated 1.5 year Class B notes at 8.09%.

“Even without a international rating attached ...

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