Volkswagen to issue RMB800m in securities in China

Volkswagen (VOW.ETR) plans to issue about RMB800 million (US$128 million) in asset-backed securities in China as early as this month, Bloomberg reported, citing a person familiar with the matter. The issuance of the securitized notes follows similar moves by Ford Automotive Finance and Toyota Motor Finance last month, as demand for finance in China’s auto industry grows. This offering opens a door to international investors,” said Helen Wong, a Hong Kong-based senior director on the structured finance team at Fitch. It’s the first securitization backed by Chinese automotive loan receivables which has international ratings, according to the ratings company.