Just in:
Rhenus 4PL Solutions Brings Digital Logistics Expertise Support To The Circular Economy Initiative Of Looper Textile Co. And REMONDIS // Gulf’s Mega‑Fund Exits Bank of America Stake // Proscenic Launches Major Prime Day 2025 Sale with Up to 40% Off Best-Selling Vacuums Starting at €89 // Now an AI Agent that Crafts AI Agents // Digital Toro: Lamborghini’s Temerario Charges into Metaverse // DHL reaffirms commitment to Malaysia’s economic growth, identifies opportunities through Strategy 2030 // Abu Dhabi Chamber’s new strategy helps membership grow to 157,207 // Dubai Ultra‑Luxury Property Boom Shows No Slowdown // Printbelle Unveils High-Speed POD Hub to Power Next-Gen E-Commerce Growth // Golden Gateway Opens to India for UAE’s 10‑Year Residency // What the new Bitcoin bull market means for the UAE // Jurassic World: The Experience Roars Into Bangkok – 8 August 2025 At Asiatique The Riverfront Destination // Iran’s Oil Surge Defies Conflict and Sanctions // Affordable Birthday Bouquet Options Under AED 150 // UAE Authority Rejects Claims of Lifetime Golden Visa // ISCA and SHICPA Sign MOU to Strengthen Support for Accountancy Professionals and Firms in Shanghai // European Luxury Faces China Demand Dip, Seeks New Growth Drivers // Metal Markets Rocked by Surprise 50 % Copper Tariff // Dorsett Mongkok Grants Travellers’ 3 Wishes: 3 Extra Perks, 26-Hour Stays & 20% Savings on Direct Bookings // Bitcoin Supply on Exchanges Drops to Multi‑Year Low //

VW returns to debt market with €8bn benchmark deal

e5e2331c d8ef 11e6 944b e7eb37a6aa8e

Investors rushed to participate in Volkswagen’s return to European bond markets on Thursday, with the German carmaker’s first benchmark issue following the emissions scandal attracting huge demand.

The €8bn euro-denominated bond attracted €24bn of orders by late afternoon, when books were closed ahead of final pricing.

ADVERTISEMENT

Bankers said the deal was launched with a spread 15 basis points tighter than initial indications.

“There was a lot of pent-up demand — investors were certainly looking to re-establish positions in the name and the credit,” said Rupert Lewis, a syndicate banker at BNP Paribas, which worked on the deal.

VW was the largest issuer of corporate bonds in Europe until the emissions scandal broke, when the it admitted to installing technology that enabled up to 11m diesel cars worldwide to understate harmful emissions in official tests.

Until this week, VW had not sold a benchmark bond in a big currency since August 2015. The carmaker has continued selling asset-backed securities, and was the largest seller in Europe at an annual pace of €4bn in both 2015 and 2016, according to Morgan Stanley data.

“They have been through a lot and got themselves to a position where they felt comfortable in re-accessing the market,” said Mr Lewis.

“They want to get back to normal business as usual and be a frequent user of the debt markets globally — this is their reintroduction”.

The new debt is being sold across four tranches, with maturities ranging from two to 10 years. The 10-year bond priced with a coupon of 1.9 per cent.

The company was the biggest issuer of corporate bonds in Europe from 2011 to late-2015, Dealogic data shows, but has since more heavily relied on securitisation markets, where loans and leases are packaged up and sold on to investors.

Despite avoiding bond markets in big currencies, the company has issued smaller corporate bonds in other currencies, including a renminbi-denominated bond in China last May. That followed three securitisation deals in China.

Corporate bond prices in Europe have been supported by €72bn of purchases from the European Central Bank, which has included company bonds in its stimulus programme since June last year.

At the end of March, the ECB will reduce its overall purchases from €80bn to €60bn a month, prompting question marks over future support for corporate credit. However, analysts suggest demand for the asset class remains strong.

“The whole debate about what the ECB is going to do has not pushed investors to the sideline,” said Srikanth Sankaran, an analyst at Morgan Stanley. “The political risk is still relevant but it’s not stymied investor behaviour.”

Source link


Notice an issue?

Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.


ADVERTISEMENT