Volkswagen Financial Services (VWFS) has placed three bonds for €2.25bn (£1.95bn) in total, as well as AUD 750m (£407m, €467m) in securities backed by Australian receivables.
For the three bonds, volumes, terms and interest rates are:
- €1bn, one-and-a-half year, Euribor rate to three months plus 0.35%
- €500m, three years, 0.375%
- €750m, five years, 0.875%
European investors accounted for 90% of buyers. The shorter-term bonds were mostly concentrated in Germany and France, while the UK saw the strongest demand for the five-year bond.
VWFS said the bonds, issued through a banking consortium which included Credit Agricole, Goldman Sachs, MUFG Securities and Societe Generale, were more than twice oversubscribed.
VWFS expected rating agencies Standard & Poor’s and Moody’s to rate the issue BBB+ and A3 respectively.
The company also placed €470m in securities backed by receivables in its Australian subsidiary.
The securities are backed by a pool of 26,500 financing contracts. Around 75% are on new vehicles, with the remainder originated from the used segment.
According to VWFS, asset-backed securities and bonds, at €32.7bn and €33.7bn both accounted for around 18% of the company’s refinancing of 2017. Customer deposits were another major source of funding with €33.5bn.