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FACT - 2018-1 Ltd: 24 November 2018

After a 12 year absence Porsche Bank AG returns to the securitisation market.

The issue is backed by a portfolio of (a) lease receivables arising from the lease agreements for vehicles primarily manufactured by the Volkswagen Group but also automobiles of other manufacturers; (b) certain other receivables arising out of, or in connection with, such lease agreements; (c) receivables arising out of the future sale of the Leased Vehicles; (d) loan receivables arising from loans granted in order to finance the purchase of vehicles primarily manufactured by the Volkswagen Group but also automobiles of other manufacturers, including any ownership rights (Vorbehaltenes Eigentum) retained by Porsche Bank Aktiengesellschaft in such Financed Vehicles in order to secure such loan receivables.

Eligibility criteria (includes): the Purchased Receivables exist, are governed by Austrian law and are valid, binding and enforceable obligations of the respective Debtor; the Asset Agreements allow for payment in monthly instalments only; the Purchased Receivables are freely assignable; none of the Debtors is an Affiliate or employee of Porsche Bank; the respective Asset Agreement exists for at least two months since its origination and that the respective Purchased Receivable has not been overdue for more than one month; the Lease Agreements and the Loan Agreements have been entered into exclusively with Lessees and Borrowers which, if they are corporate entities, have their registered office or, if they are individuals, have their place of residence in Austria.

The portfolio consists of 37,979 contracts, advanced to 35,690 obligors (and 35,513 obligor groups). The Average Amount per Contract is Eur14,628 and per obligor is Eur15,566. Obligor type: individual – 71.05%, corporate – 28.95%. Credit type: Finance Lease – 80.11%, loan – 16.25% and operating lease – 3.65%. Interest rate type: fixed – 83.05%, variable – 16.95%. Car type: new – 53.41%, used – 46.59%. The WA seasoning is 16.74 months. Regional concentration: Steiermark / some parts of Burgenland – 16.58%, Tirol / Vorarlberg – 15.13%, Wien – 14.81%, and Niederösterreich / some parts of Burgenland – 13.15%.

BNP Paribas, Societe Generale and UniCredit Bank AG (the Joint Lead Managers) will subscribe the Listed Notes on the Issue Date and will offer the Listed Notes, from time to time, in negotiated transactions or otherwise, at varying prices to be determined at the time of sale. The Class C Notes are not offered, but will be subscribed by the Seller on the Issue Date.

EU Risk Retention: Porsche Bank, in its capacity as Seller and as Subordinated Lender, will retain for the life of the transaction a material net economic interest of not less than 5% in the transaction 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, subject always to any requirement of law applicable to it. The Seller will retain, on an ongoing basis until the earlier of the redemption of the Listed Notes in full and the Final Maturity Date, (i) a first loss tranche constituted by the claim for repayment of a loan advance in an initial principal amount of EUR 2,778,000 (the Subordinated Loan) made available by the Subordinated Lender to the Issuer under the Subordinated Loan Agreement as of the Issue Date as well as (ii) the Class C Notes subordinated to the Listed Notes so that the sum of the aggregate principal amount of the Class C Notes and the principal amount of the Subordinated Loan is equal to at least 5% of the nominal amount of the "securitised exposures" (i.e. the Purchased Receivables) as of the Issue Date.

Compare/contrast: FACT - 2006 Ltd (redeemed), ROOF Leasing Austria S.A. (Compartment 2016), PBD Germany Auto 2018