Driver Espana Six: 01 March 2020
This will actually be the seventh transaction (see Private Driver Espana 2013-1) from the Volkswagen Spanish franchise, where the originator for this transaction is Volkswagen Finance SA, EFC. VW Finance is a wholly owned subsidiary of Seat SA, which in turn is owned by Volkswagen AG.
The static portfolio (non-replenishing) will consist of103,919 loan receivables derived from auto loan contracts concluded by VW Finance with retail consumers in Spain (private 84.74%, freelance 11.72% and companies 3.54%). Vehicle type: new - 78.67%, used – 21.33%. The average discounted outstanding balance is Eur10,740, with the largest borrowing being Eur64,789. The top 20 borrowers account for just 0.10 of current balances. Type of credit (by discounted principal balance): classic credit 87.83%, auto credit 12.17%. WA seasoning is 15.18 mnths. Regional concentration (by discounted principal balance): Catalonia 20.60%, Andalucia 17.40% and Madrid 14.19%.
EU Risk Retention: The originator will retain for the life of the transaction a material net economic interest through an interest in randomly selected exposures. Such interest in randomly selected exposures has been and will be equivalent to no less than 5% of the nominal value of the securitised exposures on an ongoing basis provided that the level of retention may reduce over time in compliance with Article 10 (2) of the Commission Delegated Regulation (EU) 625/2014 or any successor delegated regulation.
US Risk Retention: The transaction will not involve the Seller implementing the risk retention requirements of Section 15G of the U.S. Securities Exchange Act of 1934, but rather will be made in reliance on an exemption provided for in Section __.20 of the U.S. Risk Retention Rules regarding non U.S. transactions.
STS: The transaction has been structured to comply with the requirements for simple, transparent and standardised securitisations transactions as set out in Articles 20, 21 and 22 of the Securitisation Regulation.
Compare/contrast: Driver Espana 5, Autonoria Spain 2019