October - December

Porsche successfully places new ABS bond in the USAPorsche benefits from low interest rate environment refinancing its financial services business

Stuttgart. Dr. Ing. h.c. F. Porsche AG has issued another ABS bond in the USA by its subsidiary Porsche Financial Services Inc. headquartered in Lisle, Illinois, USA, worth approximately 530 million US dollars. The private placement received top grades by rating agencies. The sports car manufacturer already used this kind of refinancing twice in 2011. This time Porsche could significantly reduce its credit spread in comparison to the previous transactions. The current average coupon rate offers with just over half a per cent highly attractive refinancing terms for Porsche. Lutz Meschke, Porsche AG’s Chief Financial Officer: “With this transaction we have achieved the lowest coupon rate ever in the US-American ABS lease term market.” The investors who purchased the ABS bond were insurance companies, pension funds, banks, asset managers and corporations.

“The overwhelming investor demand is mainly attributable to the confidence in Porsche as an issuer but also a result of perfect market timing”, Mr. Meschke continued. Despite ongoing uncertainty on the capital markets, Porsche was able to replicate the successes of its 2011 ABS transactions. ”The significant oversubscription of the bondis further evidence for Porsche’s high ranking in the ABS bond market”, Mr. Meschke added. Given this positive response, the company does not rule out further private placements in the US-American bond market. The transaction was supported by J.P. Morgan and Barclays Capital as book runners and Deutsche Bank and Société Générale as co-managers.