Chicago, Nov. 7 – Volkswagen International Finance NV priced €2.5 billion of green bonds in a triple-tranche transaction (A3/BBB+) on Monday, according to a market source.
The notes are guaranteed by Volkswagen AG.
The three tranches included:
• €1 billion of three-year bonds with a 4.125% coupon priced at 99.956 to yield 4.141%, or at mid-swaps plus 108 basis points;
• €750 million of 5.25-year bonds with a 4.25% coupon priced at 99.8 to yield 4.297%, or mid-swaps plus 123 bps; and
• €750 million of 7.5-year bonds with a 4.375% coupon priced at 99.448 to yield 4.467%, or at mid-swaps plus 138 bps.
Initial talk for the three-year tranche was at mid-swaps plus 145 bps to 150 bps, for the five-year bonds at 160 bps to 165 bps and for the 7.5-year paper at 175 bps to 180 bps.
Guidance brought talk into the 115 bps area for the three-year tranche, the 130 bps area for the middle tranche and the 145 bps area for the longest tranche.
Books went over €3.5 billion for the three-year bonds, €1.8 billion for the 5.25-year bonds and €2.3 billion for the longest dated tranche, based on the final spreads.
Credit Agricole CIB, DZ Bank Ag, ING, SEB and SMBC were listed as active bookrunners. ING is handling billing and delivery.
Proceeds will be used to finance or refinance eligible green projects.
The Regulation S global notes will be listed on the Luxembourg Stock Exchange.
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: | €2.5 billion
|
| Issue: | Green bonds
|
| Bookrunners: | Credit Agricole CIB, DZ Bank Ag, ING (billing and delivery), SEB and SMBC
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | Regulation S
|
|
|
| Three-year bonds
|
| Amount: | €1 billion
|
| Maturity: | Nov. 15, 2025
|
| Coupon: | 4.125%
|
| Price: | 99.956
|
| Yield: | 4.141%
|
| Spread: | Mid-swaps plus 108 bps
|
| Price talk: | Mid-swaps plus 145 bps to 150 bps
|
| ISIN: | XS2554487905
|
|
|
| 5.25-year bonds
|
| Amount: | €750 million
|
| Maturity: | Feb. 15, 2028
|
| Coupon: | 4.25%
|
| Price: | 99.8
|
| Yield: | 4.297%
|
| Spread: | Mid-swaps plus 123 bps
|
| Price talk: | Mid-swaps plus 160 bps to 165 bps
|
| ISIN: | XS2554488978
|
|
|
| 7.5-year bonds
|
| Amount: | €750 million
|
| Maturity: | May 15, 2030
|
| Coupon: | 4.375%
|
| Price: | 99.448
|
| Yield: | 4.467%
|
| Spread: | Mid-swaps plus 138 bps
|
| Price talk: | Mid-swaps plus 175 bps to 180 bps
|
| ISIN: | XS2554489513
|
|
|
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