Braunschweig, Germany, 16th July 2012
Volkswagen Leasing GmbH successfully issues 10-year benchmark bond with a total volume of one billion euros
Volkswagen Leasing GmbH has yesterday successfully placed a 10-year benchmark bond with a volume of one billion euros pursuant to its 18 billion euro Debt Issuance Programme. This is the first benchmark bond of Volkswagen Leasing GmbH with a term of 10 years and the second benchmark transaction in 2012 under the roof of Volkswagen Financial Services AG. The order book reached a volume of 2.2 billion euros and was considerably oversubscribed. The bond were mainly marketed in Germany and France followed by Great Britain and Switzerland. The bond was sold at the lower end of the price range thanks to the great investor demand.
“The term of 10 years is exceptionally long for a bond of an automotive financial services provider like Volkswagen Financial Services. Our aim was, however, to lock-in the current favorable conditions for a longer period and to comply with the investors’ demand for longer maturities. Thereby we follow our diversified funding strategy and put the protection of liquidity in the foreground.” said Frank Fiedler, CFO of Volkswagen Financial Services AG.
The details of the placement were as follows:
- Issuer: Volkswagen Leasing GmbH
- Volume: EUR 1 billion
- Denominations: EUR 100,000.00
- Term: 10 Years
- Coupon: 2.375 %
- Issue price: 99.631%
- Stock exchange: Luxembourg
The issue was marketed by a banking consortium comprising Barclays, BNP Paribas, Royal Bank of Canada and UniCredit.
Information for editors
Volkswagen Financial Services AG is a wholly-owned subsidiary of Volkswagen AG with headquarters in Braunschweig, Germany. The market leader for automotive financial services in Europe is responsible for the coordination of the worldwide financial services activities of the Volkswagen Group. Volkswagen Financial Services AG has 7,322 employees worldwide – including over 4,599 alone in Germany (as at: 31.12.2011). As at the end of 2011, Volkswagen Financial Services AG reported total assets of more than 77 billion euros, a pre-tax result of 933 million euros, and a portfolio of more than 6.85 million current contracts.
Volkswagen Leasing GmbH is an operating subsidiary of Volkswagen Financial Services AG. The company is specialised in the leasing of individual motor vehicles to private and corporate customers with a comprehensive spectrum of services as well as in the management of vehicle fleets.
Contacts for press inquiries:
Volkswagen Financial Services AG