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:
