Chicago, June 24 – Volkswagen International Finance NV priced €1.5 billion of green bonds in two equal parts (A3/BBB+) on Tuesday, according to a market source.
The global notes are guaranteed by Volkswagen AG.
For a short-three tranche, the company sold €750 million of 3.125% bonds due March 28, 2025 at 99.939 to yield 3.152%. The spread priced at 115 basis points over mid-swaps. Initial price talk was between 145 bps to 150 bps that was guided into the 120 bps area.
The five-plus tranche priced as €750 million of 3.75% bonds due Sept. 28, 2027 at 99.546 to yield 3.85%. The spread came at 155 bps over mid-swaps, versus initial talk between 195 bps and 200 bps that was later guided into the 165 bps area.
Final books were in excess of €2.2 billion for the shorter dated tranche and more than €3.2 billion for the 5.25-year part.
Proceeds will be used to finance or refinance eligible green projects.
ING handled billing and delivery. The bank was joined by BBVA, Commerzbank and IMI-Intesa Sanpaolo as active bookrunners.
The financing arm of Volkswagen is based in Amsterdam. Volkswagen, a German automotive manufacturer, is based in Wolfsburg, Germany.
| Issuer: | Volkswagen International Finance NV
|
| Guarantor: | Volkswagen AG
|
| Amount: | €1.5 billion
|
| Issue: | Green bonds
|
| Bookrunners: | ING, BBVA, Commerzbank, IMI-Intesa Sanpaolo
|
| Trade date: | June 21
|
| Settlement date: | June 28
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | Regulation S
|
|
|
| 2.75-year bonds
|
| Amount: | €750 million
|
| Maturity: | March 28, 2025
|
| Coupon: | 3.125%
|
| Price: | 99.939
|
| Yield: | 3.152%
|
| Spread: | Mid-swaps plus 115 bps
|
| Price talk: | Mid-swaps plus 145 to 150 bps
|
| ISIN: | XS2491738352
|
|
|
| 5.25-year bonds
|
| Amount: | €750 million
|
| Maturity: | Sept. 28, 2027
|
| Coupon: | 3.75%
|
| Price: | 99.546
|
| Yield: | 3.85%
|
| Spread: | Mid-swaps plus 155 bps
|
| Price talk: | Mid-swaps plus 195 bps to 200 bps
|
| ISIN: | XS2491738949
|
|
|
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