Porsche Financial Services Re-enters U.S. ABS Market
![Porsche Financial Services Re-enters U.S. ABS Market](https://investorshangout.com/images/blog/investors-hangout-newswire.jpg)
Porsche Financial Services Re-enters U.S. ABS Market
Porsche Financial Services, Inc. (PFS), headquartered in Atlanta, has issued auto lease Asset Backed Securities (ABS) in the USA with a principal amount of $850 million. This follows two successful auto loan ABS issuances by PFS in the previous year.
About Porsche Financial Services
Porsche Financial Service is an indirect, wholly owned subsidiary of the German luxury car maker Dr. Ing. h.c. F. Porsche AG. PFS serves as the dedicated provider of leasing and financing products for Porsche in the United States.
Details of the ABS Transaction
The securities issued in the transaction received a ‘AAA’ rating from the rating agencies and achieved competitive pricing, highlighting strong investor interest and demand. This transaction was divided into five tranches, including a floating rate tranche, and was backed by a pool of auto lease contracts financing Porsche vehicles.
Investor Interest
The deal attracted 53 unique investors, which included investment funds, asset managers of financial institutions, trusts, banks, and corporates. This strong participation underscores the robust demand for asset-backed securities in the current market.
Comments from Leadership
“This marks another significant milestone in our financing strategy. We are pleased with the reintroduction of our prime auto lease platform,” says Tobias Hausladen, Treasurer & Chief Financial Officer of Porsche Financial Services. “Once again, strong investor demand allowed us to upsize the transaction from an initial $750 million to the maximum $850 million.”
Expansion and Operations
Porsche Financial Services, Inc., founded in 1991, provides custom financial solutions and products to Porsche customers and dealers. In 2012, PFS expanded its operations to become the captive finance provider for the exclusive brands of the Volkswagen Group, which include Bentley, Lamborghini, and Bugatti. As an integrated premium financial services provider, every new product from PFS contains the true essence of some of the world’s most exclusive vehicle manufacturers.
Frequently Asked Questions
What is the purpose of Porsche Financial Services' recent ABS issuance?
The recent ABS issuance of $850 million aims to finance auto lease contracts for Porsche vehicles, highlighting investor interest in the luxury automotive sector.
How does Porsche Financial Services contribute to the Volkswagen Group?
Porsche Financial Services serves as the captive finance provider for exclusive brands within the Volkswagen Group, offering tailored leasing and financing products.
What rating did the securities receive?
The securities issued by Porsche Financial Services received a ‘AAA’ rating, indicating a high level of credit quality and investor confidence.
Who were the book runners for this ABS transaction?
The companies that served as book runners for the ABS transaction include BofA Securities, Barclays, Mizuho, and Wells Fargo Securities.
How has Porsche Financial Services changed since its founding?
Since its founding in 1991, Porsche Financial Services has expanded its offerings and operations, now providing financial products not only for Porsche but for the exclusive brands of the Volkswagen Group.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/