Volkswagen Bank places bonds worth 2.5 billion euros
"With a total of four bonds in a broad maturity spectrum and including a variable-rate tranche, we have generated strong interest and demand among investors," says Bernd Bode, Head of Group Treasury and Investor Relations at Volkswagen Bank GmbH. "Despite the ECB interest rate decision that took place on that day, the primary market proved to be very receptive to the execution of this transaction, which is reflected in particular in an almost four-fold oversubscription. The originally announced volume of two billion euros could be increased to 2.5 billion euros without having to make price concessions. Overall, the successful placement is a good start into the new financial year for us and supports our planned growth course," Bode continued.
Asset managers acquired the highest share of the transaction at around 70 percent. With regard to the regional distribution of investors, Germany and Great Britain are most strongly represented. As expected, the transaction was mainly signed in Europe. It can be assumed that the rating agencies Standard & Poor's and Moody's will rate the bonds BBB+ and A3.
The bonds were marketed by a banking consortium comprising BayernLB, Crédit Agricole CIB, Deutsche Bank, Santander and SMBC Nikko.
The bonds of Volkswagen Bank GmbH at a glance:
|Bond 1||Bond 2||Bond 3||Bond 4|
|Issuer||Volkswagen Bank GmbH|
|Volume||300 million euros||500 million euros||850 million euros||850 million euros|
|Denominations||100,000 euro||100,000 euro||100,000 euro||100,000 euro|
|Term||3.5 years||3.5 years||5 years||7.5 years|
plus 1.47 %
|1.250 %||1.875 %||2.500 %|
|Issue Price||99.825 %||99.646 %||99.981 %||99.819 %|
Information for editors:
Volkswagen Financial Services are a business division of the Volkswagen AG group of companies and comprise Volkswagen Financial Services AG along with its associated companies, Volkswagen Bank GmbH, Porsche Financial Services, and the financial services companies in the USA, Canada, and Spain that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania brand and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers. Volkswagen Financial Services have a total of 15,770 employees worldwide – including 6,670 alone in Germany. Volkswagen Financial Services report total assets of around EUR 186.9 billion, an operating result of EUR 2.5 billion euros and a portfolio of around 19.7 million current contracts (as at: 31.12.2017).
Volkswagen Bank GmbH, which was founded in 1949, is a wholly owned subsidiary of Volkswagen AG. With a balance-sheet total of 79 billion euros as at December 31st, 2017 Volkswagen Bank has long been Europe’s leading automobile bank. The products and services of Volkswagen Bank GmbH range from the financing of new and used vehicles of all the Group’s brands, over direct banking, to dealer financing.
Contact for press inquiries:
Marc Siedler (Pressesprecher)
Phone: + 49 (0)531 / 212-87675