Press Release

Mar 31, 2020

Volkswagen Financial Services issues bonds with a volume of 2.15 billion euros

Terms of three, five and eight years

Braunschweig, 30 March 2020. Volkswagen Financial Services AG has issued three bonds with different maturities and a total volume of 2.15 billion euros. The issue attracted strong investor interest to the total amount of more than five billion euros. Volkswagen Financial Services expects Standard & Poor's to rate these bonds BBB+ and Moody's A3.

"We are regularly active on the capital market because we have grown steadily over the past few years and because we give top priority to securing our capital procurement and liquidity. Risk premiums have increased in comparison with our last issues as a result of the current COVID-19 pandemic and the related turmoil on the money and capital markets. However, the high demand from investors shows the trust that is placed in our business model. This issue strengthens our liquidity position and we are very pleased that we are able to use our refinancing instruments so successfully even during the COVID-19 pandemic," says Frank Fiedler, CFO of Volkswagen Financial Services AG.

Bonds, asset-backed securities and customer deposits are the most important components in the refinancing mix of Volkswagen Financial Services. In fiscal year 2019, bonds contributed almost 54 billion euros, asset-backed securities 39 billion euros and customer deposits 32 billion euros to the refinancing mix.
The bonds were marketed by a consortium of banks consisting of Banco Santander, J.P. Morgan, Merrill Lynch International, MUFG and UniCredit Bank. 

  Bond 1 Bond 2 Bond 3
Issuer Volkswagen Financial Services AG
Volume 650 million euros 700 million euros 800 million euros
Denominations 1,000 Euro 1,000 Euro 1,000 Euro
Term 3 years 5 Years 8 years
Coupon 2.500 % 3.000 % 3.375 %
Issue price 99.775 % 99.598 % 99.463 %
ISIN XS2152058868 XS2152062209 XS2152061904

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 and Canada 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 16,571 employees worldwide – including 7,414 alone in Germany. Volkswagen Financial Services report total assets of around EUR 223.5 billion, an operating result of EUR 2.96 billion euros and a portfolio of around 21.5 million current contracts (as at: 31.12.2019).

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