Volkswagen Group Issues Fifth Panda Bond in China, Raising US$412.5M

What's the deal? Volkswagen Group has issued its fifth panda bond in China, raising a total of US$412.5M (roughly €380M) through a dual-tranche offering under its Debt Financing Instruments (DFI) Programme. The bond was issued by Volkswagen International Finance N.V. and guaranteed by Volkswagen AG.

Panda bonds are renminbi-denominated bonds issued in China by companies headquartered outside the country. The first tranche totals US$275M with a three-year maturity, while the second tranche amounts to US$137.5M over five years.

The bond was subscribed by Bank of China Limited, China Construction Bank Corporation, Deutsche Bank (China) Co., Ltd., and Industrial and Commercial Bank of China Limited, and was sold to institutional investors.

Clifford Chance advised Volkswagen Group on the transaction, led by partner Dr. Cristina Freudenberger (Capital Markets, Frankfurt). The firm has previously advised Volkswagen on establishing and updating the DFI Programme as well as on the first four panda bond issuances.

Source: rechtundpolitik.com