BNY Mellon Appointed For Volkswagen ABS Program

Volkswagen Financial Services has appointed BNY Mellon account bank and paying agent by on a €3 billion asset-backed security (ABS) warehousing program for auto leases.

This is the third ABS leasing deal that Volkswagen Financial Services and BNY Mellon have worked on together in the last two years. The German auto-ABS asset class accounted for nearly a quarter of the entire European ABS volume in 2013, according to research on the ABS and structured credits by DZ Bank.

Dean Fletcher, head of EMEA Corporate Trust at BNY Mellon says: “We have seen a structural shift in European corporates turning from the banks to the capital markets, to raise debt. Earlier this year business expectations and consumer confidence in Germany both hit their highest levels in over two years, which may accelerate future corporate issuance activity.”

In addition to the account bank and paying agent roles, BNY Mellon has also been appointed cash administrator and calculation agent, interest determination agent, and Luxembourg listing agent to VCL Master Residual Value S.A. Compartment 1.