Cases & Deals

Volkswagen Bank renews auto-loan securitization programme in compliance with STS requirements under EU Securitization Regulation

Client(s) Volkswagen AG

Jones Day represented Volkswagen Bank GmbH, a subsidiary of Volkswagen AG, as originator, in connection with an auto loan securitization programme for the issuance by Driver Master S.A. (acting with respect to its Compartment 1) of up to €10 billion asset-backed floating rate Class A Notes and asset-backed floating rate Class B Notes. Established in 2015, the Programme has now been amended to become the first securitization programme in Germany complying with the requirements for simple, transparent, and standardized (STS) securitization under the EU Securitization Regulation, which is in force since January 1, 2019. The compliance was verified by STS Verification International GmbH, an authorized third party verification agent pursuant to Article 28 of the EU Securitization Regulation, and was notified to ESMA. The Class A Notes and the Class B Notes are listed on the Luxembourg Stock Exchange and are backed by a portfolio of loans secured by a security interests in certain cars located in Germany. The 9 Series of Class A Notes are rated "AAA(sf)" by DBRS, "AAA sf" by Fitch and "Aaa(sf)" by Moody's; and the 3 series of Class B Notes are rated "A(high)(sf)" by DBRS, "A+ sf" by Fitch and "A1(sf)" by Moody's. Jones Day acted as transaction counsel in connection with the preparation of the base prospectus, all transaction documents and the STS notification process.