LeasePlan UK announces £582.1m refinancing deal
The deal provides funding for LeasePlan UK’s projected organic growth and new vehicle leases. High investor interest demonstrates confidence in LeasePlan UK’s business model and growth potential.
The latest round of financing follows LeasePlan’s successful 2009 fundraising programme – the first of its kind in the UK – which raised EUR 733m. @[email protected] At a time when many organisations are struggling to secure sufficient operational funding, the £582.1m investment was secured on the strength of LeasePlan Corporation N.V, the global parent company, backed by LeasePlan UK’s lease assets portfolio. The substantial level of financing made available was facilitated by a secured triple-A credit rating.
Earlier this year, LeasePlan Corporation N.V posted strong yearly results, reporting a 13% net profit increase to EUR 225m in 2011. LeasePlan UK achieved significant growth, including an 8% rise in its funded fleet, increasing its market share of all new operational leases in the UK to 9% from 7.5% in 2010.
David Brennan (Inset), managing director, LeasePlan UK, said: 'While many fleet leasing suppliers are having to scale back due to financial constraints, the health of LeasePlan UK means that we are in a strong position to pursue our ambitious plans for growth.
'This deal demonstrates great confidence in LeasePlan UK’s business from major investment companies and will enable us to continue our strategy of growing funded fleet and market share. We believe it is also a vindication of our market offer and in particular LeasePlan UK’s dedication to putting customer service at the heart of everything we do. We’re delighted that a lot of hard work from people throughout the organisation has paid off.
'Now that we have a renewed and diversified funding base, we will push even harder to grow in the UK,' he added.
David Stickland, Finance director, LeasePlan UK, said: 'Positive financial results this year and a substantially grown share of the UK leasing market put LeasePlan in a strong position to broker this significant securitisation deal.
'Continuing our drive for a diversified funding profile, the deal represents a milestone fundraising, which is unique to the automotive leasing industry at this time. The fact that we are in a position to securitise receivables, including residual values, shows investor confidence in our business model, a track record of success and the strong potential for future cashflow generation.
'Against the backdrop of a very difficult economic climate generally, this deal represents a huge vote of confidence in the way LeasePlan UK is going about its business. Our success in securing sterling ABS investor demand is evidence of investor confidence in LeasePlan UK’s ability to operate at the very top of the automotive leasing industry,' he added.
This is the first time that LeasePlan Corporation has sought sterling investor demand. It is the fifth securitisation transaction under the "Bumper" programme, which covers asset backed transactions in Germany, the Netherlands and the UK. It follows Bumper 4 which was placed in April 2011 and was backed by Dutch leasing assets.