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Bavarian Sky Europe Compartment 2 - Switzerland: 31 July 2017

The second in the series of auto lease securitisations for BMW Group Financial Services, where the underlying leases are of Swiss origin. The actual originator is BMW (Schweiz) AG, which provides financing for passenger cars, light commercial vehicles and motorcycles originated by authorised dealers in Switzerland.

The leased vehicles are purchased by BMW (Schweiz) AG from the dealer pursuant to the terms of the relevant dealer agreement. The Lease Agreement entered into between the Lessees and BMW (Schweiz) AG as Lessor provides for level monthly Lease Instalments payable in advance and due on the first of each month. The Lessee and the Lessor may agree on a Cash Reserve to be paid by the Lessee at the inception of the Lease Agreement as a security for the claims of the Lessor pursuant to the respective Lease Agreement.

The initial portfolio (as at cut-off 30 June 2017) will consist of 15,957 lease agreements where the average lease balance is Sfr29,774 and the average investor residual is Sfr12,702. The WA Discounted RV as % of the Current Discounted Balance is 47.46%. Customer type (by discounted lease balance): private 78.95%, commercial 21.05%. Vehicle type: new 80.42%, used 19.58%. The WA seasoning is 13.70mnths.

The Seller will purchase and retain the Class B Notes for the life of the Transaction in order to comply with the Risk Retention Rules

CRR 405: BMW (Schweiz) AG will retain for the life of the Transaction a material net economic interest of not less than 5% in accordance with Article 405 paragraph (1)(d) of the CRR, Article 51 paragraph (1)(d) of Section 5 of Chapter III of the AIFMR and Article 254 paragraph (2)(d) of the Solvency II Implementing Regulation. The Seller will retain, on an ongoing basis until the earlier of the redemption of the Class A Notes in full and the Legal Final Maturity Date, the Class B Notes.

Compare/contrast: Bavarian Sky Europe Compartment 1 – Switzerland