VW’s China debut benefits from internationalisation

By Tom Porter
24 Jul 2014

Volkswagen Financial Services has now sold auto ABS in 11 jurisdictions having priced its long awaited renminbi debut this week, with a person close to the deal saying it priced some 50bp tighter to Chinese government bonds than a virtually identical June deal from German competitor BMW Bank.

The Rmb800m (€96m) Driver China One transaction placed Rmb699m of AA/Aa3 rated (Fitch/Moody’s) fixed rate Class A notes with a coupon of 4.8%, as well as Rmb44m of A-/Baa2 rated fixed rate Class B notes at 8.08%.

The Class A notes were 1.2 times covered at the final ...

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