Refinancing

The Funding Mix of VWFS Overseas is based on regional peculiarities. Each entity of the Volkswagen Financial Servies Overseas Group uses the local market for their refinancing. It is one of the basic objectives of our refinancing strategy to optimise our refinancing costs by focusing on the following topics: 

1. Well-diversified financing instruments: Ensuring our growth on the one hand, and refinancing at the best conditions possible on the other requires an extensive set of highly sophisticated instruments and measures. Our spectrum includes issuing bonds in different markets and currencies as well as asset-backed securities (ABS) and  commercial papers and where possible collecting customer deposits. Due to our presence in different market segments we benefit from the most favourable conditions.
2. Also utilising means outside the company rating: In the case of ABS tranches, it is the underlying receivables, which are subjected to the rating, but not the company. With all these issuances we have achieved triple-A ratings, which is a proof for their high quality. 
   
3. Finding and tapping new investors: The acquisition of new investors by usage of new instruments, tapping new regions or usage of new currencies we are extending our refinancing basis. 
4. Minimizing risks by usage of capital market derivatives: It goes without saying that we observe the development of the interest rate structure curve in order to take advantage of favourable refinancing rates. We utilise particular financial derivatives such as interest rate swaps so that we always successfully match maturities with our current business operations. In principle refinancing is carried out in local currency. If the refinancing is not done in local currency, the currency risk is fully hedged.

With the exception of political risks, Volkswagen Financial Services Overseas AG hereby declares that, as the shareholder of its affiliated companies, over which it has managerial control and/or in which it holds a direct or indirect majority share of the share capital, it will exert its influence to ensure that the latter meet their liabilities to lenders in the agreed manner. Moreover, Volkswagen Financial Services Overseas AG confirms that, for the term of the loans, it will make no changes to the share structures of these companies which would adversely affect the letter of comfort without informing the lenders. This comfort also applies to holders of unguaranteed bonds issued by the following affiliated companies: Banco Volkswagen S.A., São Paulo, Brazil; LM Transportes Interestaduais Serviços e Comércio S.A., Salvador, Brazil; Volkswagen Finance (China) Co., Ltd., Beijing, China; Volkswagen Doğuş Finansman A.Ş., Istanbul, Turkey; VDF Filo Kiralama A.Ş., Istanbul, Turkey; VDF Faktoring A.Ş., Istanbul, Turkey.

For bonds issued by Volkswagen Financial Services Overseas AG prior to 1 July 2024 for which Volkswagen Financial Services AG has assumed obligations for, please click here. 

Volkswagen Financial Services Japan Ltd. 

Volkswagen Financial Services Australia Pty Ltd.

Volkswagen Finance (China) Co., Ltd.

Click here for the refinancing activitites of Volkswagen Financial Services AG (Europe).