Press Release

January 25, 2022

Volkswagen Financial Services successfully issue bonds totaling two billion euros

Bonds with terms of three and six years

Braunschweig, 25 January 2022. Volkswagen Financial Services AG has placed its first two benchmark bonds this year with a total volume of two billion euros. The bonds with terms of three and six years are expected to be rated A3 (Moody's) and BBB+ (Standard and Poor's). The issue took place under the Debt Issuance Program of EUR 35 billion and was oversubscribed more than 2.1 times. "We are extremely satisfied with our start in the euro bond market – despite a currently challenging market environment – and are pleased with the strong investor interest," said Frank Fiedler, CFO of Volkswagen Financial Services AG. He added: "Excellent access to the capital market is a key success factor for our future sustainable growth targets."

The bond (ISIN: XS2438615606) with a term of three years has a volume of EUR 1 billion and a fixed interest rate of 0.250 percent. The bond (ISIN: XS2438616240) with a six-year term bears a fixed interest rate of 0.875 percent and also has a volume of EUR 1 billion. Both bonds are available in denominations of EUR 1,000. The transaction was oversubscribed more than 2.1 times and therefore generated investor interest of EUR 4.2 billion.

With the bond issue Volkswagen Financial Services took advantage of the continued high demand from investors for investment grade bonds. Asset managers were the most strongly represented investor group, accounting for over 70 percent of all orders. In terms of regional distribution, there was a particular concentration of investors from Germany, France and the United Kingdom, although investors from Asia were also represented.

The bonds were marketed by a consortium of banks comprising BNP Paribas, HSBC, Mizuho, Standard Chartered, and UniCredit.

During the 2020 financial year, corporate bonds contributed around EUR 53 billion, or around 23 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 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 16,558 employees worldwide – including 7,472 alone in Germany. Volkswagen Financial Services report total assets of around EUR 225.6 billion, an operating result of EUR 2.8 billion and a portfolio of around 21.9 million current contracts (as at: 31.12.2020).

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