Chicago, Sept. 18 – Volkswagen Leasing GmbH priced €2 billion of green notes (A3/BBB+) on Monday, according to information from a sellside source.
Parent company Volkswagen Financial Services AG will be the guarantor.
The deal priced with a first €800 million 2.5-year tranche that has a 4.5% coupon. Pricing at 99.854, the yield was 4.574%. Alternatively, the tranche priced at mid-swaps plus 88 basis points. Initial price talk was in the mid-swaps plus 120 bps area.
The second €500 million series due 2029 priced with a 4.625% coupon at 99.589 to yield 4.717%, or at mid-swaps plus 140 bps. Talk was in the 170 bps area.
A €700 million tranche with an eight-year tenor priced with a 4.75% coupon at 99.175 to yield 4.877%, or at mid-swaps plus 163 bps. Talk started in the 195 bps area.
Deutsche Bank (billing and delivery), ING, IMI – Intesa Sanpaolo, SEB and Societe Generale are the managers for the Regulation S global notes.
The notes will be listed in Luxembourg.
Proceeds will be used for green projects relating to vehicles with zero-tailpipe emissions.
The total order book was over €6.9 billion. Investors were most interested in the shortest dated notes with the longest-dated notes around €300 million lighter than the €2.6 billion largest order book.
Volkswagen Financial is the financing arm of Volkswagen, an automotive manufacturer based in Wolfsburg, Germany.
| Issuer: | Volkswagen Leasing GmbH
|
| Guarantor: | Volkswagen Financial Services AG
|
| Amount: | €2 billion
|
| Issue: | Green global notes
|
| Bookrunners: | Deutsche Bank (billing and delivery), ING, IMI – Intesa Sanpaolo, SEB and Societe Generale
|
| Trade date: | Sept. 18
|
| Settlement date: | Sept. 25
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | Regulation S
|
|
|
| 2.5-year notes
|
| Amount: | €800 million
|
| Maturity: | March 25, 2026
|
| Coupon: | 4.5%
|
| Price: | 99.854
|
| Yield: | 4.574%
|
| Spread: | Mid-swaps plus 88 bps
|
| Price talk: | Mid-swaps plus 120 bps area
|
| ISIN: | XS2694872081
|
|
|
| 5.5-year notes
|
| Amount: | €500 million
|
| Maturity: | March 25, 2029
|
| Coupon: | 4.625%
|
| Price: | 99.589
|
| Yield: | 4.717%
|
| Spread: | Mid-swaps plus 140 bps
|
| Price talk: | Mid-swaps plus 170 bps area
|
| ISIN: | XS2694872594
|
|
|
| Eight-year notes
|
| Amount: | €700 million
|
| Maturity: | Sept. 25, 2031
|
| Coupon: | 4.75%
|
| Price: | 99.175
|
| Yield: | 4.877%
|
| Spread: | Mid-swaps plus 163 bps
|
| Price talk: | Mid-swaps plus 195 bps area
|
| ISIN: | XS2694874533
|
|
|
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