(Corrects IPT level on NC10 tranche after erroneous lead communication)
By Robert Hogg
LONDON, June 7 (IFR) - Volkswagen has set final terms for a €3.5bn dual-tranche hybrid bond, according to a lead.
The perpetual non-call 5.5-year bond, sized at €1.5bn, will price at a yield of 2.75% and the €2bn perpetual non-call 10-year note will come at 3.875%. Initial price talk was 3% area and 4.125%-4.25% respectively.
Pre-reconciled orders have surpassed €11bn, with a slight skew to the 10-year. The deal is expected to price later today.
Bank of America Merrill Lynch (B&D), CA-CIB, Goldman Sachs, HSBC and MUFG are lead managers.
The bonds are expected to be rated Baa2 by Moody's and BBB- by S&P. The issuer is Volkswagen International Finance NV with Volkswagen AG acting as guarantor. The guarantor's senior ratings are A3/BBB+ (both negative outlook). (Reporting by Robert Hogg; editing by Sudip Roy, Julian Baker)
Financials lift HK stocks to near 3-wk high ahead of handover day
June 29 Hong Kong stocks closed at their highest level in nearly three weeks on Thursday, led by financials on bet that Beijing would unveil supportive policies as President Xi Jinping visits the former British colony to commemorate the 20th anniversary of its handover to China on July 1.