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CORRECTED-REFILE-VW sets yields for expected €3.5bn dual-tranche hybrid
June 7, 2017 / 10:07 AM / in 6 months

CORRECTED-REFILE-VW sets yields for expected €3.5bn dual-tranche hybrid

(Corrects IPT level on NC10 tranche after erroneous lead communication)

By Laura Benitez

LONDON, June 7 (IFR) - Volkswagen has set the yields for an expected €3.5bn dual-tranche hybrid bond, according to a lead bank.

The perpetual non-call 5.5-year bond will yield 2.75% and the perp non-call 10-year 3.875%. Initial price talk was 3% area and 4.125%-4.25% respectively.

Total orders have surpassed €9bn so far for the two benchmark bonds and the books close at 11:15am. 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 Laura Benitez; editing by Alex Chambers, Julian Baker

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