Funding strategy
LeasePlan – a regulated Dutch bank – aims for matched financing from a widely diversified funding base. With this as an underlying strategy LeasePlan adapts to its current financial surroundings to ensure the availability of cost-effective and sustainable matched funding to meet the ongoing liquidity needs for the group.
In Debt Capital Markets LeasePlan has successfully established an independent funding platform and to date has issued in 14 different currencies in multiple formats (both structured and vanilla) off its €15 billion EMTN programme attracting a wide variety of investors from numerous jurisdictions in both public and private format. This level of diversification is a good match for LeasePlan's diversified global operations which create a natural demand for the proceeds of the majority of these foreign currency bonds allowing LeasePlan to provide inter-company funding directly to our subsidiaries.
In addition to its €15 billion EMTN programme, LeasePlan has a number of alternative funding sources including an A$2 billion Kangaroo programme, German promissory notes (Schuldsheine) and a short term funding mix that incorporates a €3bln euro commercial paper program, a €2bln Belgian CD programme and interbank deposits. Continuing with the theme of diversification LeasePlan has successfully established a securitisation program which to date has created over €2.5 billion repo eligible securities in 3 different jurisdictions (Netherlands, Germany & UK) and is currently analysing lease portfolios from other jurisdictions to continue this process. In February 2010 LeasePlan used its Dutch banking licence to further expand its avenues of funding by setting up 'LeasePlan Bank' an online bank in the Netherlands focussing on the Dutch retail market.
In addition on 16 December 2010 LeasePlan signed a €1.475 billion 3 year committed facility with a consortium of 16 banks to bring total committed liquidity facilities for the group to €3.1 billion. This transaction is another important milestone in the implementation of a truly diversified funding strategy for the group that allows LeasePlan to maintain its healthy liquidity buffers going forward.