24 May 2023
Deutsche Bank Trust and Agency Services facilitates £500m UK Auto ABS issuance
The Deutsche Bank Trust and Agency Services (TAS) team has supported Ford Credit Europe Bank (FCE) with their recent auto ABS issuance, Globaldrive Auto Receivables UK 2023-A plc.
The Class A, B and C notes are due in 2031. These are backed by a pool of new and used cars and light commercial vehicle receivables, originated across the UK by FCE through motor vehicle dealers.
The portfolio comprises 33,161 retail auto hire purchase agreements and is split between private (85.25%) and commercial (14.75%) obligors and between new (99.68%) and used (0.32%) vehicles. 82.95% are part of Ford’s trade cycle management plan product, which contain an option for the customer to purchase the vehicle once the contracts terminate. Alternatively, the customer may trade in the vehicle with a dealer and purchase another vehicle under a new contract or return the vehicle to FCE. The remaining 17.05% are standard loans.
TAS has been appointed as account bank, trustee and security trustee, cash manager, data agent, principal paying agent, calculation agent, and registrar.
“We are delighted to support FCE, with their successful securitisation of UK auto loans,” says Jason Connery, Head of TAS EMEA at Deutsche Bank.
About FCE: FCE is an indirect wholly owned subsidiary of Ford Motor Company, or "Ford", a company incorporated under the laws of the State of Delaware, United States of America. In the UK, FCE and ALD Automotive established a joint venture to deliver integrated leasing and fleet management solutions for corporate customers. FCE provides a variety of retail, leasing and wholesale finance plans in the markets in which it operates. Retail financing is provided predominantly through a number of title retention plans, including conditional sale and hire-purchase contracts. In addition, FCE offers credit sale and personal loans, where title to vehicles is not retained. Operating and finance leases are provided to corporate and other institutional customers, covering single vehicles as well as large and small fleets. In most markets, operating leases are provided by third parties with whom FCE works closely. These third parties retain responsibility for marketing and sales in return for fee income.
In addition to wholesale finance, where FCE makes loans to dealers to finance the purchase of vehicles, FCE provides dealers with loans for working capital and property acquisitions. FCE is the servicer of the receivables for the issuer and is responsible for all servicing functions except that the principal paying agent is responsible for making payments to the noteholders based on information and calculations provided by the servicer and cash manager.