Independent fleet lessor LeasePlan has
announced a €700m securitisation backed by its UK leasing
portfolio.
The Netherlands-headquartered firm has placed
£582.1m (€706.8m) in securities in two tranches: €445.8m denoted
class A1 and £212.1m denoted class A2.
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A statement from LeasePlan said there was a
high level of oversubscription in the euro tranche.
The transaction is the first of its kind by
Leaseplan to tap sterling investor demand and is the fifth
securitisation transaction under a programme called Bumper, which
was launched six years ago and covers asset backed transactions in
Germany, the Netherlands and the UK.
“The Bumper 5 transaction and the responses
thereof demonstrate the continued confidence of investors in
LeasePlan’s business model and diversified funding strategy,” the
statement said.
This latest transaction follows on from Bumper
4 backed by Dutch leasing assets and placed in April 2011.
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By GlobalDataWith the aim to continue providing a regular
supply of asset backed paper, LeasePlan is currently in the process
of conducting further feasibility studies for LeasePlan France,
LeasePlan Spain, LeasePlan Italy and LeasePlan USA, according to
the group’s website.
The main objective of LeasePlan’s
securitisation programme is to increase funding diversification
allowing LeasePlan to tap an additional window to liquidity.
David Brennan, managing director, LeasePlan
UK, said: “While many fleet leasing suppliers are having to
scale back due to financial constraints, the health of LeasePlan UK
means that we are in a strong position to pursue our ambitious
plans for growth.
“This deal demonstrates great confidence in
LeasePlan UK’s business from major investment companies and will
enable us to continue our strategy of growing funded fleet and
market share.
“Now that we have a renewed and diversified
funding base, we will push even harder to grow in the UK.”
The Bumper transactions are backed by the
lease receivables and the future residual value claims of a
LeasePlan subsidiary’s fleet of vehicles. The transactions are not
structured with an aim of obtaining off-balance sheet
treatment.
In relation with residual value risk,
LeasePlan feels it is in a better position than any other market
participant to assess the residual value risk embedded in the
fleet, according the LeasePlan website.
The latest transaction has been priced at 1
month euribor +120 basis points for the class A1 euro notes and
libor 1 month + 140 basis points for the class A2 sterling notes.
The class A notes have a weighted average life of two years. In
addition, £46.1m class B notes rated AA+(sf) with a spread of 1
month libor + 185 basis points were retained by the company.
