(Corrects IPT level on NC10 tranche after erroneous lead communication)
By Sudip Roy
LONDON, June 7 (IFR) - Volkswagen has opened books on a dual-tranche euro hybrid bond, according to a lead.
The German carmaker has begun marketing a perpetual non-call 5.5-year at 3% area and a perpetual non-call 10-year at 4.125%-4.25%.
The deal is today’s business. 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 Sudip Roy, editing by Julian Baker