BayernLB issues bond for Volkswagen Leasing GmbH with international banking syndicate

5 January 2011

VW first issuer on the 2011 corporate bond market

Munich - Under the joint lead management of Barclays, BayernLB, BNP Paribas and Santander, Volkswagen Leasing GmbH has issued a EUR 1.25 billion bond guaranteed by Volkswagen Financial Services AG. The 4.5 year bond with a 2.75 percent coupon was highly oversubscribed.

The bond met with high demand, attracting a very diverse mix of in-vestors, and the order book performed very well. In the end it was sig-nificantly oversubscribed at just under EUR 2 billion. The final pricing at 60 bps over mid-swap was at the lower end of the price range.

A total of nearly 200 investors participated in the issue. The regional breakdown was as follows: 44 percent Germany and Austria, 19 per-cent France, 13 percent UK & Ireland, 7 percent Benelux, 6 percent Switzerland, and 2 percent each from Scandinavia and Iberia. Other countries made up 7 percent. Two-thirds of demand was generated by asset managers, followed by banks, funds and insurance companies. The issue is rated A3 stable/A- negative.

Paul Kuhn, head of the Debt Capital Markets Department at BayernLB, commented: "This bond marks a seamless transition from our highly successful 2010. The placement is also a great example of the close relationship we have built up with a large number of institutional in-vestors over many years and our strong expertise in capital market transactions".