Expected rating A3 (Moody's) and BBB+ (Standard and Poor's)
Braunschweig, 13 June 2019. Volkswagen Leasing GmbH, a wholly-owned subsidiary of Volkswagen Financial Services AG, has issued two bonds with a total volume of 1.75 billion euros. A rating of A3 (Moody's) and BBB+ (Standard and Poor's) is expected for the bonds with maturities of three and seven years.
"We have grown well in the leasing business in the current year and intend to continue this development in the further course of 2019. The current issue refinances the growth at adequate conditions in the current market environment," says Frank Fiedler, CFO of Volkswagen Financial Services AG.
The bond (ISIN: XS2014292937) with a term of three years has a volume of EUR 1.1 billion and a fixed interest rate of 0.5 percent. The seven-year bond (ISIN: XS2014291616) has a fixed interest rate of 1.5 percent and a volume of EUR 650 million. Both bonds are available in denominations of 1,000 euros.
The issue was marketed by a consortium of banks consisting of BNP Paribas, ICBC Standard Bank, LBBW, NatWest Markets and UniCredit.
In the Volkswagen Financial Services business division, euro bonds have already been issued this year by Volkswagen Financial Services AG and Volkswagen Bank GmbH. Including this issue by Volkswagen Leasing GmbH, Volkswagen Financial Services have so far issued public euro bonds in the amount of around seven billion euros in 2019.
In addition, Volkswagen Financial Services have also issued a bond in Mexico through the local company Volkswagen Leasing Mexico S.A. de C.V. The volume is 2.5 billion Mexican pesos, or around EUR 115 million. The maturity is two years and the bond earns a variable interest rate comprising the Mexican interbank rate TIIE 28 (tasa de interés interbancaria de equilibrio) plus a surcharge of 0.39 percent. The transaction was marketed by the banks Citibanamex and HSBC.
In the 2018 financial year, corporate bonds contributed around EUR 39 billion, or around 19 percent, to the refinancing of Volkswagen Financial Services.
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).