ENP Newswire - 26 May 2014
Release date- 23052014 - Stuttgart. Porsche Financial Services, Inc. headquartered in Atlanta, Georgia, has issued a new ABS bond in the USA worth approximately 490 million US dollars.
Porsche Financial Services is an indirect, wholly owned subsidiary of Dr. Ing. h.c. F. Porsche AG. Just as with the transactions in previous years, the private placement received top grades from the rating agencies, and in comparison to other benchmark issuers, it achieved a very low credit spread. The average coupon rate is well below one percent. For the first time, this kind of transaction includes Bentley and Lamborghini finance contracts in addition to Porsche finance contracts.
Since 2012, Porsche Financial Services has been offering leasing and financing products for the Bentley, Lamborghini and Bugatti brands, which also belong to the Volkswagen Group. 'This is the Integrated Automotive Group at work', Lutz Meschke, Chief Financial Officer of Porsche AG, explained. 'The sister brands within the Group benefit from our proven structures. The fifth successful placement since 2011 and the repeated significant oversubscription highlight the excellent reputation of Porsche in the ABS bond market,' Mr. Meschke added. Porsche Financial Services is a well established issuer of private bonds in the USA and considers these transactions an important element of its refinancing strategy. The transaction was supported by Barclays Capital, J.P. Morgan and Societe Generale as book runners. The investors who purchased the ABS bond were insurance companies, pension funds, banks, asset managers and corporations.