Press Release

Braunschweig, 5 June 2018. Volkswagen Bank GmbH has placed three bonds with a total volume of two billion euros. Standard & Poor's and Moody's are expected to rate the issue with BBB+ and A3 respectively. The transaction has generated an investor interest of nearly five billion euros.

After two weeks of nearly no primary market activity, Volkswagen Bank GmbH was able to use a first phase of the market revival on Monday. The transaction was almost two and a half times oversubscribed and asset managers were the largest investor group, accounting for around 80 percent of all orders. In terms of regional distribution, the focus was on investors from Great Britain, Germany and France. Investors from Asia were also represented in significant volumes.

This is the second euro benchmark issue by Volkswagen Financial Services this year. In April, Volkswagen Financial Services AG has already issued two bonds worth more than two billion euros.

In addition, Volkswagen Leasing Mexico S.A. de C.V., a subsidiary of Volkswagen Financial Services AG, has placed a bond with a volume of two billion Mexican Peso, or around EUR 86 million, in the mid of May (ISIN: MX91VW0100D3). The maturity is four 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 0.60 percent.

The bonds were marketed by a banking consortium comprising Deutsche Bank, ING, Mizuho and NatWest Markets.

The bonds of Volkswagen Bank GmbH at a glance:

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 15,770 employees worldwide – including 6,670 alone in Germany. Volkswagen Financial Services report total assets of around EUR 186.9 billion, an operating result of EUR 2.5 billion euros and a portfolio of around 19.7 million current contracts (as at: 31.12.2017).

Volkswagen Bank GmbH, which was founded in 1949, is a wholly owned subsidiary of Volkswagen AG. With a balance-sheet total of 79 billion euros as at December 31st, 2017 Volkswagen Bank has long been Europe’s leading automobile bank. The products and services of Volkswagen Bank GmbH range from the financing of new and used vehicles of all the Group’s brands, over direct banking, to dealer financing.