March 23, 2017 / 11:34 AM / 10 months ago

Volkswagen to raise more than €7.5bn in bond market return

LONDON, March 23 (IFR) - Demand for Volkswagen’s first euro unsecured bond issue since the emissions cheating scandal has passed €22bn and the issuer is expected to print more than €7.5bn across four tranches, according to a lead.

The automaker has set final spread for a March 2019 floating rate note at 30bp over three month Euribor. The note was initially marketed for a €1bn+ size at 45bp area over three month Euribor.

Volkswagen has set the final spread for a March 2021 tranche at 45bp over mid-swaps, after marketing a €1bn+ bond at 60bp area over mid-swaps.

The final spread for an October 2023 tranche is 80bp over mid-swaps, 15bp tighter than the initial level of plus 95bp area for a €1bn+ trade.

The issuer has set the final spread for a March 2027 tranche at 115bp over mid-swaps, after marketing a €1bn+ transaction at 130bp area over mid-swaps.

Barclays, BNP Paribas, Citigroup, Mizuho, Societe Generale and UniCredit are lead managers.

Books will go subject at 11.45. The expected issue ratings are A3 from Moody’s and BBB+ from S&P (both with negative outlooks). (Reporting by Robert Hogg, Editing by Helene Durand)

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