Germany-based Volkswagen Bank GmbH said Dec. 7 that it placed €2 billion of bonds in three tranches.
The first tranche, worth €750 million, matures in 3.5 years and carries a coupon equivalent to the three-month Euro Interbank Offered Rate plus 42 basis points. The notes were priced at par.
The second tranche was also worth €750 million, but matures in 5.5 years and carries a coupon of 0.75%. The notes were priced at 99.899%.
The third tranche, worth €500 million, matures in eight years and carries a coupon of 1.25%. The notes were priced at 99.172%.
A consortium comprising Commerzbank, Deutsche Bank, RBC Capital Markets and Banco Santander marketed the bonds, which were the first euro benchmark issuance by Volkswagen Bank since August 2014. The bonds generated investor interest of more than €7 billion.
