LeasePlan Secures € 1.5 Billion Three-Year Credit Facility from Volkswagen Group
ALMERE, NETHERLANDS – LeasePlan Corporation N.V. and LeasePlan Finance N.V. have closed a new three-year € 1.5 billion credit facility from Volkswagen AG through its subsidiary Volkswagen International Payment Services N.V., which is available for draw down effective immediately. The details of this arm's length facility have been agreed by LeasePlan in consultation with its three shareholders, Volkswagen Group (50 percent), Mubadala Development Company (25 percent), and Olayan Group (25 percent).
Any support by shareholders is viewed as a temporary measure designed to deal with current market circumstances. As soon as markets return to normal, LeasePlan will revert to its usual debt capital and money markets financing.
LeasePlan did see continuing growth in first half year of 2008. Net result from continuing operations improved to EUR 117.2 million, an increase of 4.7 percent compared to the first half year of 2007; the lease contract portfolio grew by EUR 557 million (+4 percent) to EUR 14.4 billion since December 2007; and the number of cars under management showed an increase of 47,000 units since December 31, 2007 (+3.6 percent) to a total of 1,362,000.
LeasePlan's market position further strengthened in 2008. The network of companies was expanded to 30 countries through the addition of LeasePlan Mexico. In France, LeasePlan acquired from Mercedes-Benz Financial Services S.A. its subsidiary Daimler Chrysler Fleet Management France S.A., which operates under the brand name DCS Fleet.
Since LeasePlan only has fleet management assets on its balance sheet, no credit crunch-related write-offs have taken place. The company also has a positive outlook for the remainder of 2008, with net profit from continuing operations expected to exceed the 2007 comparable result.
Almost all entities of the LeasePlan Group achieved growth in the first half of 2008, both in number of contracts and in financial results. The result from continuing operations increased to EUR 117.2 million (+4.7 percent). The number of cars under management showed an increase of 47,000 units since December 31, 2007 (+3.6 percent) to a total of 1,362,000. In addition to autonomous growth, this increase also includes the acquisition of the DCS fleet (20,000 cars) in France. The lease contract portfolio grew by EUR 557 million (+4 percent) to EUR 14.4 billion since December 2007. This includes EUR 217 million related to the DCS fleet.