Braunschweig, 6 April 2018. Volkswagen Financial Services AG has placed three bonds with a total volume of 2.25 billion euros. Standard & Poor's and Moody's are expected to rate the issue with BBB+ and A3 respectively. Altogether, the transaction was oversubscribed more than two times.
"Following the numerous successful issues last year, we have now made a good start on the euro bond market in 2018 as well," says Frank Fiedler, CFO of Volkswagen Financial Services AG. He continues: "A good refinancing situation is the basis for our successful business and for our growth in recent years."
Bonds make a substantial contribution to the funding volume of Volkswagen Financial Services. At the end of 2017, bonds amounting to EUR 32.7 billion (previous year: EUR 27.6 billion) accounted for around 18 percent of the refinancing for the Volkswagen Financial Services division. Other significant constituents of the funding mix were Asset Backed Securities with a figure of EUR 33.7 billion (around 18 percent) and customer deposits with EUR 33.5 billion (also around 18 percent).
With more than 430 orders allocated, asset managers represented the largest group of investors with a share of around 80%. In terms of regional breakdown, as expected, the majority of the investors participating in the issue were European with a share of over 90%. Whereby the highest concentration in the bonds with the shorter terms came from Germany and France and the 5-year bond saw the strongest investor demand from the UK.
The bonds were marketed by a banking consortium comprising Crédit Agricole CIB, Goldman Sachs International, MUFG Securities EMEA plc and Société Générale.
