Volvo returns to euro public bonds after four years

By Alex Radford
17 May 2019

Volvo, the Swedish lorry maker, took advantage on Friday of recent upgrades to both its ratings by issuing its first public euro bond since 2014. The decision seemed to pay off: the deal was six times covered, and priced close to or even through fair value.

On April 16 S&P Global upgraded Volvo to A-. Moody’s followed last week, bumping up Volvo to A3 on May 10. It cited rising demand for trucks and construction equipment, increased efficiency and profitability and reduced structural costs.

“It was an opportunistic trade, as we wanted to ...

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