June 29, 2017 / 5:26 PM / 3 months ago

Volkswagen's financial services arm places bonds worth 3.5 bln euros

FRANKFURT, June 29 (Reuters) - Volkswagen Leasing GmbH has placed three bonds worth a total of 3.5 billion euros ($4 billion), the carmaker said on Thursday, in the largest capital market transaction by its financial services arm.

The placement was more than two times oversubscribed, Volkswagen Leasing said in a statement.

The bonds are guaranteed by Volkswagen Financial Services AG and rated by Standard & Poor’s as BBB+ and by Moody’s as A2, the carmaker said. Volkswagen Leasing GmbH is a wholly owned subsidiary of Volkswagen Financial Services AG.

It is the first euro denominated public bond issued by the financial services business since Volkswagen faced a diesel emissions cheating scandal which erupted in September 2015.

The last time Volkswagen Financial Services issued a public bond in euros, then also through Volkswagen Leasing GmbH, was in August 2015.

“The highly successful placement is evidence of our good standing on the capital market, despite a longer pause in our issuance,” said Frank Fiedler, chief financial officer of Volkswagen Financial Services AG.

$1 = 0.8747 euros Reporting by Edward Taylor; Editing by Mark Potter

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