Berlin-based AUTO1 Group SE, the giant digital automotive platform for buying and selling used cars, announced the successful pricing of its first-ever securitisation of German consumer car loans to the public market.

AUTO1 Group securitised a portfolio of €223 million of German consumer car loans which were originated between December 2020 and April 2024.

“The transaction known as FinanceHero 2024-1 has all the key features investors expect of German consumer car loan ABS transactions: ‘AAA’ rated senior notes, ‘Simple, transparent and standardised’ (STS) verification and eligibility for the European Central Bank (ECB),” said AUTO1 Group.

“With a blended spread of 87bps on the A-D Notes, AUTO1 Group will benefit from the spread differential between the underlying loans and the refinancing costs over the lifetime of the loans, leading to sustained additional profits.

“The company expects to see a release of cash back to its balance sheet on closing as the effective refinancing advance rate has gone from 83% to 95%, while the cost of capital has been lowered significantly.”

AUTO1 Group CFO Markus Boser said:“With our successful debut issuance of rated ABS Notes in the public market, we’ve completed an important strategic milestone in the development of our captive finance business.

“We are pleased with the strong investor demand and oversubscription, which allowed us to significantly tighten the pricing during marketing.

“With access to this deep and efficient market we can confidently grow our origination volumes, supporting the growth of our Autohero segment as a frequent ABS issuer as well as future profitability.”

Citigroup acted as underwriter and mandated lead arranger on the transaction. Linklaters advised AUTO1 Group and Hogan Lovells acted as advisor to the underwriter.

AUTO1 Group operates in over 30 countries and generated revenue of €5.5 billion in 2023.

Following its IPO in February 2021, the group’s shares trade on the Frankfurt Stock Exchange.