Billed as a ‘milestone’, LeasePlan claims that it is the only business in the automotive leasing industry to secure such funding and says high investor interest demonstrates confidence in its business model and growth potential.
The latest round of financing follows LeasePlan’s successful 2009 fundraising programme – the first of its kind in theUK- which raised €733m.
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 annual results, reporting a 13% net profit increase to €225m in 2011. LeasePlanUK achieved significant growth, including an 8% rise in its funded fleet, increasing its market share of all new operational leases in theUKto 9% from 7.5% in 2010.
David Brennan, managing director, LeasePlanUK, said: ‘While many fleet leasing suppliers are having to scale back due to financial constraints, the health of LeasePlanUKmeans that we are in a strong position to pursue our ambitious plans for growth.
‘This deal demonstrates great confidence in LeasePlanUK’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 LeasePlanUK’s dedication to putting industry-leading customer service at the heart of everything we do. Now that we have a renewed and diversified funding base, we will push even harder to grow in theUK.’
David Stickland, finance director, LeasePlanUK, said: ‘Positive financial results this year and a substantially grown share of theUKleasing 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 LeasePlanUKis going about its business.’
It is the first time that LeasePlan Corporation has sought sterling investor demand. LeasePlanUKoperates a fleet in excess of 129,000 vehicles (34,000 commercial vehicles). The LeasePlan group operates a fleet of more than 1.3 million vehicles.