Volkswagen Car Lease No.9 Ltd

After an absence of 7mnths, the largest automobile leasing company in Germany is back in the market
with its ninth offering, a True Sale amortizing structure. All the lease contracts are current as of the cut
-off date, and the portfolio is static with no substitution of receivables allowed.

The portfolio comprises of 79,419 lease contracts to 57,455 lessees. The largest single lessee has a
concentration of just 0.15%, with the top 20 lessees making up 1.81% of the portfolio. Average season-
ing is 6mnths, with the leases diversified through-out Germany (top 5 regions: North Rhine-Westphalia
21.09%, Bavaria 17.41%, Baden-Wuerttemburg 15.12%, Lower Saxony 9.35%, and Hesse 7.73%).

The deal comprehensively beat the guidance levels of 6a/15-16bps. The +5bps print on the AAA notes
is 2bps tighter than on the recent DaimlerChrysler Silver Arrow Compartment 2 transaction which had a
similarly short average life (1.28yrs), though it could be argued that it was a securitisation of auto loans
rather than leases. The class B notes also came tigher, 1bp tighter than A/Aa2 rated notes in the Silver
Arrow deal. Both tranches were over 2x subscribed, the deal being well received by European investors
with the main buyers coming from banks and money market funds in the UK and France.


Compare/contrast: VCL 8, Silver Arrow 2, SC Germany Auto