Press Release

Braunschweig, 6 April 2018 

Volkswagen Financial Services place bonds worth 2.25 billion euros

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 at a glance:

 

 

Bond 1

Bond 2

Bond 3

Issuer

Volkswagen Financial Services AG

Volume

1.0 billion euro

500 million euro

750 million euro

Denominations

100,000 euro

1,000 euro

1,000 euro

Term

1.5 years

3.0 years

5.0 years

Coupon

3-month-euribor

plus 0.35%

0.375%

0.875%

Issue price

100.228

99.926

99.505

ISIN

XS1806435324

XS1806453814

XS1806457211


The bonds were marketed by a banking consortium comprising Crédit Agricole CIB, Goldman Sachs International, MUFG Securities EMEA plc and Société Générale.
 

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).

Contact for press inquiries:
Volkswagen Financial Services

Marc Siedler (Press Officer)
Tel.: + 49 5 31 / 2 12-876 75
E-mail: marc.siedler@vwfs.com
www.vwfs.de