Just like Ford and Toyota already did not long ago, a source disclosed that Volkswagen AG is setting up an 800 million yuan ($128 million) issue of asset-backed securities in China.
The person, who disclosed this under condition of anonymity, because he is not entitled to publicly discuss private matters, said that the sale of the securitised notes, due August 2020, is headed by China International Capital Corp, while Fitch Ratings Ltd. answered queries about the issue by saying the note issue is enforced by automotive loan receivables originating from Volkswagen Financial (China) Co., a unit of Volkswagen Financial Services AG.
“This offering opens a door to international investors,” said Helen Wong, a Hong Kong-based senior director on the structured finance team at Fitch.
“The growth in China’s auto sales has been remarkable during the last few years,” said Jerome Cheng, a senior credit officer in Moody’s Investors Service’s structured finance group in Hong Kong. “Because of the increase in sales and the increase in auto loans, there will be additional financing needs from auto finance companies.”
According to Fitch, the assets have a portfolio of 13,696 loans backing them, with a balance of 799.7 million yuan. The pool has collaterals from VW, Audi, Porsche, Skoda, Bentley and Seat – which means that all automotive brands in VW AG are participating.