By Paul A. Harris
Portland, Ore., Sept. 30 – Volvo Car AB (Ba1/BB+) priced a €500 million issue of seven-year green senior notes at par to yield 2½% on Wednesday, according to market sources.
The yield printed at the tight end of yield talk in the 2 5/8% area. Initial guidance was in the 2 7/8% area.
The deal was marketed to investment-grade and crossover accounts, as well as investors with “green” portfolios and traditional high-yield names, a market source said.
Joint active bookrunner ING will bill and deliver. Joint active bookrunner BNP Paribas served as the green structuring advisor. SEB was also a joint active bookrunner.
The Gothenburg, Sweden-based luxury car-maker, which is owned by China’s Zhejiang Geely Auto Group, plans to use the proceeds to support its development of electric vehicles and to further reduce the greenhouse emissions of its fleet.
| Issuer: | Volvo Car AB
|
| Amount: | €500 million
|
| Maturity: | Oct. 7, 2027
|
| Securities: | Green senior notes
|
| Joint active bookrunners: | BNP Paribas, ING (bill and deliver) and SEB
|
| Green structuring adviser: | BNP Paribas
|
| Coupon: | 2½%
|
| Price: | Par
|
| Yield: | 2½%
|
| Spread: | Mid-swaps plus 286 bps
|
| Call protection: | Make-whole call until three months prior to maturity, then callable at par, otherwise non-callable
|
| Trade date: | Sept. 30
|
| Settlement date: | Oct. 7
|
| Issuer ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Distribution: | Regulation S
|
| Price talk: | 2 5/8% area
|
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