April 5, 2017 / 1:02 PM / 9 months ago

Volkswagen set to sell £850m dual-tranche bond

LONDON, April 5 (IFR) - Volkswagen Financial Services has set final terms for a £850m four and eight-year dual-tranche bond, according to a lead bank.

The company will sell a £500m four-year at G+122bp on orders of over £1.3bn, and a £350m eight-year at G+147bp on orders of over £1bn.

This follows guidance at Gilts plus 125bp area for an expected £500m size and 150bp area for an expected £300m size, respectively. Both were plus or minus 3bp, to price in the range.

Initial price thoughts for the four-year were plus 135bp area and for the eight-year plus 155bp area.

Bookrunners are Barclays, Goldman Sachs and HSBC.

The deal is expected to price later today.

The issuer is rated A2/BBB+ by Moody‘s/S&P.

The deal follows Volkswagen International Finance’s four-tranche €8bn deal issued last month.

Reporting By Laura Benitez

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