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