Press release

March 26, 2019

Volkswagen Financial Services issues bonds with a volume of 2.75 billion euros

Terms between three and eight and a half years

Braunschweig, 26 March 2019. Volkswagen Financial Services issued three bonds with different maturities and a total volume of 2.75 billion euros. The issue attracted strong investor interest to the total amount of more than six billion euros. Volkswagen Financial Services expects Standard & Poor's to rate these bonds BBB+ and Moody's A3.

Volkswagen Financial Services seized the opportunity offered by the continued high demand from investors for investment-grade bonds. The bonds were mainly placed with Western European investors, two thirds of them in France, Germany and the United Kingdom.

This is the second euro benchmark transaction of Volkswagen Financial Services this year. Volkswagen Bank GmbH had already issued bonds with a volume of two and a half billion euros in January. Last week, Volkswagen Leasing GmbH also issued an ABS transaction with a volume of one billion euros. The transaction was the first European securitisation transaction to receive the newly introduced STS (simple, transparent, standardised) status for particularly high-quality securitisations.

Bonds and ABS transactions are the most important elements in the refinancing mix of Volkswagen Financial Services. In the 2018 financial year, asset-backed securities and bonds each contributed around 39 billion euros, or together almost 40 percent, to the refinancing of Volkswagen Financial Services. Another important source of refinancing are customer deposits with a volume of around 32 billion euros (around 16 percent).

The bonds were marketed by a consortium of banks consisting of Citi, Commerzbank, Lloyds, SEB and Société Générale.


The bonds at a glance:

  Bond 1 Bond 2 Bond 3
Issuer Volkswagen Financial Services AG
Volume 1.1 billion euros 1.0 billion euros 650 million euros
Denominations 1,000 euro 1,000 euro 1,000 euro
Term 3.0 years 5.5 years 8.5 years
Coupon 0.625 % 1.500 % 2.250 %
Issue Price 99.678 % 99.538 % 99.960 %
ISIN XS1972547183 XS1972548231 XS1972547696

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 16,267 employees worldwide – including 7,010 alone in Germany. Volkswagen Financial Services report total assets of around EUR 207.6 billion, an operating result of EUR 2.6 billion euros and a portfolio of around 20.3 million current contracts (as at: 31.12.2018).

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