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Successful Placement via WestLB

Volkswagen Car Lease 10 (VCL 10) was successfully placed with a broad range of investors on November 2nd. This was the first benchmark ABS transaction since August 2007 to be fully marketed to investors via a roadshow and subsequent bookbuilding process. The syndicate of banks, led by WestLB as Sole Bookrunner and Fortis, was able to price both tranches at the lower end of the price range thanks to significant investor demand and oversubscription levels. The transaction was placed in the capital markets in two tranches:

EUR 940.2 million Class A Notes rated AAA/Aaa/AAA (Fitch/Moody’s/S&P)
EUR 30.35 million Class B Notes rated A+/A1/A+ (Fitch/Moody’s/S&P).

VCL 10 is the tenth securitisation transaction of auto lease receivables from Volkswagen Leasing GmbH (VWL), Braunschweig, a wholly owned subsidiary of Volkswagen Financial Services AG. Volkswagen Leasing securitised a highly diversified portfolio of over 76,000 auto lease receivables worth EUR 1.011 billion. Class A Notes were priced at 1-month Euribor + 37 bp (price guidance was 38 bp) and Class B Notes were priced at 85 bp (guidance was 90 bp), with books covered 2.2 times (Class A) and 2.6 times (Class B) at clearing levels. The huge demand from nearly 70 investors confirms the excellent standing of Volkswagen Leasing GmbH as the leading car lease company in the market.

The transaction was co-arranged by Volkswagen Financial Services AG and WestLB, and marketed by WestLB (Bookrunner) and Fortis as Joint Lead Managers and Commerzbank, Natixis and SEB as managers. In a five-day roadshow in London, Paris, Frankfurt, Munich, Düsseldorf and Amsterdam, over 50 investors were met in meetings and group presentations.