LONDON, April 5 (IFR) - Volkswagen Financial Services has
set final terms for a £850m four and eight-year dual-tranche
bond, according to a lead bank.
The company will sell a £500m four-year at G+122bp on orders
of over £1.3bn, and a £350m eight-year at G+147bp on orders of
This follows guidance at Gilts plus 125bp area for an
expected £500m size and 150bp area for an expected £300m size,
respectively. Both were plus or minus 3bp, to price in the
Initial price thoughts for the four-year were plus 135bp
area and for the eight-year plus 155bp area.
Bookrunners are Barclays, Goldman Sachs and HSBC.
The deal is expected to price later today.
The issuer is rated A2/BBB+ by Moody's/S&P.
The deal follows Volkswagen International Finance's
four-tranche €8bn deal issued last month.
(Reporting By Laura Benitez)