Braunschweig, 5th July 2016
Volkswagen Financial Services placed bond in ruble
- Fourth bond issue generates high investor interest
Volkswagen Bank RUS LLC, a subsidiary of Volkswagen Financial Services AG, has placed a bond in rubles (RUB) on the Russian capital market with a volume of RUB 5 billion (around EUR 70 million). The transaction is part of the local issuance programme of Volkswagen Bank RUS LLC totalling 50 billion rubles. The rating agencies Fitch and Standard & Poor's assess the credit quality of the bond with the grade "BBB+" and "BB+" respectively and thus above and at the level of the Russian Federation. The term of the bond is five years and a repayment option after two and a half year is a structural element of the transaction. The coupon is payable semi-annually and is 9.95% per year. The issuance was oversubscribed 2.4 times.
"Despite the tense situation in Russia and the related challenges, we are fully committed to our local activities," says Frank Fiedler, CFO of Volkswagen Financial Services AG. He adds: "After our first issuances in Russia two years ago, we are also very satisfied with this bond, because it could be successfully placed with what is a very low coupon in the local market context."
Volkswagen Financial Services have been operating on the Russian market since 2003. The financial services provided by the various companies embrace leasing, financing and insurance products for both private and business customers.
- Issuer: Volkswagen Bank RUS LLC
- Guarantor: Volkswagen Financial Services AG
- Volume: 5 billion Russian rubles
- Rating: BBB+ (Fitch), BB+ (Standard & Poor's)
- Term: 5 years
- Repayment option: After 2.5 years
- Interest payment: Semi-annually
- Coupon: 9.95% per year
- Issuing price: 100%
- Stock exchange: Moscow Exchange
A banking consortium comprising Rosbank and Raiffeisen Bank marketed the bond issue.
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 and the financial service companies in the USA, Canada, Argentina and Spain that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania and Porsche brands 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 15,182 employees worldwide – including 6,513 alone in Germany. Volkswagen Financial Services reported total assets of around EUR 157.9 billion, an operating result of EUR 1.9 billion and a portfolio of around 16.6 million current contracts (as at: 31.12.2015).
Contact for press inquiries:
Volkswagen Financial Services AG