German vehicle manufacturer BMW is launching an €800 million
bond backed by vehicle leases, amid signs that the securitisation
market is returning to form.
The deal is made up of two tranches. The first tranche, for €742
million, is rated AAA by Fitch Ratings and Standard & Poor’s,
while the second tranche, of €58 million, is rated A by both
ratings agencies.
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BMW is currently conducting a roadshow around Europe to drum up
interest from investors, according to an official at WestLB, one of
the banks managing the sale.
The deal, known as Bavarian Sky, will be backed by German car
leasing contracts, and is being managed by WestLB, Societe
Generale, Commerzbank and Skandinaviska Enskilda Banken.
The ABS market opened back up towards the end of 2009, after the
market dried up in 2008. Indeed, last November, Volkswagen
Financial Services and Piraeus Leasing both issued leasing
receivables worth a combined €1.1 billion.
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