Volkswagen Financial Services, the financial arm of the auto manufacturer, has entered an interest rate swap to switch floating rates. In the swap, Volkswagen pays the overnight money market rate and receives a rate based on three-month Euribor, according to Albrecht Moehle, head of fixed income in the group treasury in Munich.
The floating rate coupon on the note is the Euro Over Night Index Average (EONIA) plus 27.5 basis points.
Natexis Banques Populaires is the counterparty on the swap and the bookrunner on the note. The swap and note mature in two years.
