Chicago, Jan. 4 – Volkswagen Leasing GmbH priced €2.75 billion of green notes in three parts (A3/BBB+) on Thursday, according to a market source.
The first tranche priced as €850 million of 2.75-year bonds with a 3.625% coupon. Pricing was for a 99.676 discount to yield 3.756%, or at 105 basis points to mid-swaps. Initial talk was in the 130 bps area.
The second tranche, the largest, priced as €1.15 billion of 4.75-year bonds with a 3.875% coupon. The discount was 99.805 to yield 3.924%, or at a spread of 140 bps to mid-swaps. Talk was in the 170 bps area.
The longest-dated tranche priced as €750 million of 7.25-year bonds with a 4% coupon. Discounted to 99.307, the notes priced with a 4.115% yield or a spread of 160 bps to mid-swaps. Price talk was in the 200 bps area.
BNP Paribas is handling billing and delivery. BBVA, LBBW, MUFG, Santander and UniCredit are also active bookrunners.
The combined order book was over €10.4 billion with the weight of interest, €5.3 billion, on the longest tranche.
Like the recent three-part deal in September, proceeds will be used for green projects relating to vehicles with zero-tailpipe emissions.
Parent company Volkswagen Financial Services AG will be the guarantor.
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: | €2.75 billion
|
| Issue: | Green notes
|
| Bookrunners: | BNP Paribas (billing and delivery), BBVA, LBBW, MUFG, Santander and UniCredit
|
| Trade date: | Jan. 4
|
| Settlement date: | Jan. 11
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | Regulation S
|
|
|
| 2.75-year notes
|
| Amount: | €850 million
|
| Maturity: | Oct. 11, 2026
|
| Coupon: | 3.625%
|
| Price: | 99.676
|
| Yield: | 3.756%
|
| Spread: | Mid-swaps plus 105 bps, or Bunds plus 151.7 bps
|
| Price talk: | Mid-swaps plus 130 bps area
|
| ISIN: | XS2745344601
|
|
|
| 4.75-year notes
|
| Amount: | €1.15 billion
|
| Maturity: | Oct. 11, 2028
|
| Coupon: | 3.875%
|
| Price: | 99.805
|
| Yield: | 3.924%
|
| Spread: | Mid-swaps plus 140 bps, or Bunds plus 190.5 bps
|
| Price talk: | Mid-swaps plus 170 bps area
|
| ISIN: | XS2745725155
|
|
|
| 7.25-year notes
|
| Amount: | €750 million
|
| Maturity: | April 11, 2031
|
| Coupon: | 4%
|
| Price: | 99.307
|
| Yield: | 4.115%
|
| Spread: | Mid-swaps plus 160 bps, or Bunds plus 210.6 bps
|
| Price talk: | Mid-swaps plus 200 bps area
|
| ISIN: | XS2745726047
|
|
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