Volkswagen Financial Services (VWFS) has placed three bonds for €2.25bn (£1.95bn) in total, as well as AUD 750m (£407m, €467m) in securities backed by Australian receivables.
For the three bonds, volumes, terms and interest rates are:
- €1bn, one-and-a-half year, Euribor rate to three months plus 0.35%
- €500m, three years, 0.375%
- €750m, five years, 0.875%
European investors accounted for 90% of buyers. The shorter-term bonds were mostly concentrated in Germany and France, while the UK saw the strongest demand for the five-year bond.
VWFS said the bonds, issued through a banking consortium which included Credit Agricole, Goldman Sachs, MUFG Securities and Societe Generale, were more than twice oversubscribed.
VWFS expected rating agencies Standard & Poor’s and Moody’s to rate the issue BBB+ and A3 respectively.
The company also placed €470m in securities backed by receivables in its Australian subsidiary.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The securities are backed by a pool of 26,500 financing contracts. Around 75% are on new vehicles, with the remainder originated from the used segment.
According to VWFS, asset-backed securities and bonds, at €32.7bn and €33.7bn both accounted for around 18% of the company’s refinancing of 2017. Customer deposits were another major source of funding with €33.5bn.