Volkswagen Financial Services Australia has established Driver Australia Master, its A$3 billion automotive-backed master trust programme.

The master trust programme - modelled on Volkswagen’s European master programs - allows periodic acquisition of auto receivables and issuance of notes in two classes and multiple series within those classes. While the programme is a bespoke VW structure, it contains features familiar to traditional master programmes, including the ability for one series of notes to enter amortisation, while other series remain non-amortising, and the re-investment of collections to acquire new assets. The initial issuance has been rated by Fitch and S&P.

The King & Wood Mallesons team was led by Banking & Finance partner Paul Smith, together with senior associates Jie Zhang and Matthew Robinson, and solicitor Erica Long.

Commenting on the deal, partner Paul Smith said: “We are delighted to continue to support VW’s Driver Australia programmes. The master trust programme will provide VWFS Australia with ongoing funding efficiencies and flexibility, complementing its successful term deal programme.”

The KWM team acted on VWFS Australia’s two most recent Australian ABS issuances, Driver Australia Two and Driver Australia Three, raising A$463 million and A$531 million respectively.