Third ABS deal Volkswagen Financial Services and BNY Mellon have worked on in two years
BNY Mellon, a global leader in investment management and investment services, has been appointed account bank and paying agent by Volkswagen Financial Services AG on a €3 billion asset-backed security (ABS) warehousing programme for auto leases.
This is the third ABS leasing deal that Volkswagen Financial Services AG and BNY Mellon have worked on together in the last two years. Volkswagen Financial Services AG is one of the top three originators of ABSs in the world and the largest originator in Europe¹. The German auto-ABS asset class accounted for nearly a quarter of the entire European ABS volume in 2013.
"BNY Mellon has significantly increased its market share in the German auto-ABS asset class in recent years and we are optimistic about growth in this asset class," said Dean Fletcher, Head of EMEA Corporate Trust at BNY Mellon. "We have seen a structural shift in European corporates turning from the banks to the capital markets, to raise debt. Earlier this year business expectations and consumer confidence in Germany both hit their highest levels in over two years, which may accelerate future corporate issuance activity."
Volkswagen Financial Services AG is responsible for the worldwide financial services activities of the Volkswagen Group. The Volkswagen Group is the largest carmaker in Europe and in 2013 it increased the number of vehicles it delivered to customers by nearly five per cent, helped by strong growth in China.
In addition to the account bank and paying agent roles, BNY Mellon has also been appointed cash administrator and calculation agent, interest determination agent, and Luxembourg listing agent to VCL Master Residual Value S.A. Compartment 1.
As of December 31, 2013, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 66,000 debt-related issues globally. Its clients include governments and their agencies, multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and to develop customized and market-driven solutions. Its range of core services includes debt trustee, paying agency, escrow and other fiduciary offerings.
Corporate trust providers are appointed by corporations, municipal governments and other entities issuing debt to perform a variety of duties, including servicing and maintaining the debt issue, processing principal and interest payments for investors, representing investors in defaults, and providing value-added services for complex debt structures.
¹ Asset-Backed Alert ranking